The trial balance of Smart Tots Child Care does not balance

The trial balance of Smart Tots Child Care does not balance. (Click the icon to view the trial balance.) The following errors are detected: (Click the icon to view the errors.) Prepare the corrected trial balance as of August 31, 2017. Journal entries are not required. 1 More Info a. Cash is understated by $1,700. b. A S4,700 debit to Accounts Receivable was posted as a credit. c. A S800 purchase of office supplies on account was neither journalized nor posted d. Equipment was incorrectly transferred from the ledger as $89,900. It should have been transferred as $82,000. e. Salaries Expense is overstated by $100. f. A S700 cash payment for advertising expense was neither journalized nor posted g. A $150 owner\'s withdrawal of cash was incorrectly journalized as $1,500 h. Service Revenue was understated by $4,600. i. A 12-month insurance policy was posted as a $1,500 credit to Prepaid Insurance. Cash was posted correctly Print Done

Solution

Solution :- Corrected Trial Balance

Notes :-  i). Accounts receivable = 4700 * 2

= $ 9400.

ii). Equipment (overstated) = 89900 - 82000

= $ 7900.

iii). Drawings (Overstated) = 1500 - 150 = 1350.

Account Title	Debit ($)	Credit ($)
Cash	1500
Office supplies	800
Accounts Receivable	9400
Equipment (Overstated)		7900
Prepaid insurance	1500
Advertising expense	700
Salary expense (Overstated)		50
Service Revenue		4600
Drawings (Overstated)		1350
Total	13900	13900