The trial balance shown below does not balance.
Debit Credit
Cash........................................................ $2539
Accounts Receivable .................................. 7600
Supplies..................................................... 600
Equipment.................................................. 8300
Accounts Payable........................ $9766 Common Stock........................................... 2000
Dividends.................................................... 1500
Service Revenue.......................................... 15200
Wages Expense.......................................... 3800
Repair Expense........................................... 1600
Totals................................................ $25939 $26966
An examination of the ledger and journal reveals the following errors: SOLUTION
1. Each of the above listed accounts has a normal balance per the general ledger.
2. Cash of $250 received from a customer on account was debited to Cash $520 and credited to Accounts Receivable $520.
3. Dividends of $400 paid to stockholders was posted as a credit to dividends $400 and a credit to Cash $400.
4. Wages expense of $200 was omitted from the trial balance.
5. The purchase of equipment on account for $800 was recorded as a debit to Repair Expense and a credit to Accounts Payable for $800.
6. Services were performed on account for a customer, $710, for which Accounts Receivable was debited $710 and Service Revenue, was credited $71.
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