This trial balance of Messed Up Ltd. does not balance:
Your review of the ledger reveals that each account has a normal balance. You also discover the following errors:
1. Prepaid Insurance, Accounts Payable, and Income Tax Expense were each understated by $100.
2. A transposition (reversal of digits) error was made in Service Revenue. Based on the posting made, the correct balance was $14,259.
3. A debit posting to Salaries Expense of $250 was omitted.
4. A $750 paid to shareholders was debited to Salaries Expense and credited to Cash.
5. A $630 purchase of supplies on account was debited to Equipment and credited to Cash.
6. A payment of $320 for advertising was debited to Advertising Expense for $32 and credit to Cash for $32.
7. A $120 collection on account was recorded as a debit to Accounts Payable and a credit to Accounts Receivable.
8. A $2,000 note payable was issued in exchange for the purchase of equipment. The transaction was neither journalized nor posted.
Instructions
Prepare the correct trial balance.
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