11:30 & 8
Unadjusted Trial Balance
March 21, 2013
Account TitleDebit BalancesCredit Balances
Cash21,225
Accounts Receivable3,850
Supplies1,875
Office Equipment18,000
Accounts Payable1,500
Notes Payable18,000
Common Stock14,000
Retained Earnings1,425
Dividends1,950
Fees Earned17,600
Rent Expense2,300
Wages Expense3,425
52,42552,425
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Check My Work
Compute the account balances in the T accounts first.
Errors on Trial Balance
Compare the trial balance prepared by the intern (Trial Balance:
Unequal Totals) to the trial balance that you prepared (Trial Balance:
Correct). In the following table, select the accounts for each type of
error. Not all accounts contain errors.
Error TypeCashAccountsSuppliesOfficeAccountsNotesCommonRe-
TranspositionNoReceivableNoEquipmentNoPayableNoStock
Incorrectly reported as a debitNoYesNoYesYesNoYes
Incorrectly reported as a creditYesNoNoNoNoNoNo
Balance computed incorrectlyYesYesNoNoNoYesNo
Feedback
Check My Work
To determine which accounts were incorrectly reported as a
debit or credit, think about the normal balance of an account as
well as computing the account balance in the T account.
Accounting Equation
The intern is puzzled and asks "Are you sure the accounting equation
is still in balance?" Using the corrected trial balance you prepared,
prove that the accounting equation is in balance.
AssetsLiabilitiesStockholders Equity
44,950
Still puzzled, the intern asks "Why do none of the amounts in the
Check My Work
III
