The trial balance of Winter Co does not balance WINTER CO Tr

The trial balance of Winter Co. does not balance: WINTER CO. Trial Balance June 30, 2017 Debit Credit Cash Accounts receivable Supplies Equipment Accounts payable Unearned revenue F. Winter, capital F. Winter, drawings $2,720 2,088 485 $7,865 2,571 1,830 785 revenue 3,430 Office expense Salaries expense 995 2,965 $11,868 24,977 Your review of the ledger reveals that each account has a normal balance. You also discover the following errors Cash received from a customer on account was debited to Cash for $430 and Accounts Receivable was credited for the same amount. The actual collection was $340 2. The purchase of supplies on account for $350 was recorded as a debit to Equipment for $350 and a credit to Accounts Payable for $350 3. Services af $800 were performed on account for a client. Accounts Receivable was debited for $80 and Service Revenue was credited for $800 4, A debit posting to Office Expense of $490 was not done 5. A payment on account for403 was credited to Cash for $403 and debited to Accounts Payable for s304. 6. The withdrawal of $390 cash for winter\'s personal use was debited to Salaries Expense for $390 and credited to Cash for $390 7, A transposition error (reversal of digits) was made when copying the balance in Service Revenue to the trial balance. The correct balance recorded in the account was 4,330 8. The general ledger contaied a Prepaid Insurance account with a debit balance of $630 Prepare a correct trial balance WINTER CO. Trial Balance June 30, 2017 Debit Credit Totals

Solution

WINTER CO.

Trial Balance

June 30,2017

Explanation

1) cash was excess debit by 430-340=90 at the same time accounts receivable is credited by 90 so cash is decreased by 90 and receivables are increased by 90

2)supplies are increased by 350 and equipment are decreased by350

3)accounts receivable are credited by 800-80 =720 as they are less debited

4)office expense are increased by 490

5)accounts payable are debited by remaining amount 403-304=99

6)W drawing are increased by390 and salaries are decreased by 390

7)revenue is credited with correct amount

WINTER CO. Trial Balance June 30,2017
Account	Debit	credit
cash   [2720-90]	2630
Accounts receivable [2088+90+720]	2898
supplies [485+350]	835
Prepaid Insurance	630
Equipment [7865-350]	7515
Accounts payable   [2571-99]		2472
Unearned revenue		1830
F.winter capital		11111
F winer Drawings   [785+390]	1175
service revenue		4330
office expense   [995+490]	1485
salaries expense   [2965-390]	2575
Total	19743	19743