Question

Errors in Trial Balance
Identify the errors in the following trial balance. All accounts have normal balances.
Ensemble Co.
Unadjusted Trial Balance
For the Year Ending December 31, 20Y8
Debit Balances Credit Balances
Cash 42,900
Accounts Receivable 123,500
Prepaid Insurance 27,000
Equipment 300,000
Accounts Payable 52,000
Salaries Payable 4,800
Common Stock 40,000
Retained Earnings 137,200
Dividends 5,000
Service Revenue 1,216,000
Salary Expense 660,000
Advertising Expense 275,000
Miscellaneous Expense 16,600
1,801,500 1,801,500
After identifying the errors, prepare a corrected unadjusted trial balance. For those boxes in which no entry is required, leave the box blank.

Answer 1

Answer:

DEBIT SIDE $1,450,000

CREDIT SIDE $1,450,000

Explanation:

Preparation of a corrected unadjusted trial balance.

DEBIT SIDE

Cash $42,900

Accounts Receivable $123,500

Prepaid Insurance $27,000

Equipment $300,000

Dividends $5,000

Salary Expense $660,000

Advertising Expense $275,000

Miscellaneous Expense: $16,600

TOTAL $1,450,000

CREDIT SIDE

Accounts Payable $52,000

Salaries Payable $4,800

Common Stock $40,000

Retained Earnings $137,200

Service Revenue $1,216,000

TOTAL $1,450,000

Therefore the corrected unadjusted trial balance will have a debit and credit balance of $1,450,000