The trial balance of Gagne Company shown below does not balance
GAGNE COMPANY
Trial Balance
June 30, 2008
Debit
Cash
$2,600
Accounts receivable
7,600
Supplies
600
Equipment
8,300
Credit
Accounts Payable
$9,766
Gagne, Capital
1,952
Gagne, Drawing
1,500
Service Revenue
15,200
Wage Expense
3,800
Repair Expense
1,600
__Total
$26,000
$26,918
As examination of the ledger and journal reveals the following errors:
1. Each of the above listed accounts has a normal balance per the general ledger
2. Cash of $360 received from a customer on account was debited to Cash $630 and
credited to Accounts Receivable $630
3. A withdrawal of $300 by the owner was posted as a credit to Gagne, Drawing, $300 and
credited to Cash $30
4. A debit of $300 was not posted to Wages Expense
5. The purchase of equipment on account for $700 was recorded as a debit to Repair
Expense and a credit to Accounts Payable for $700
6. Services werer performed on account for a customer, $510, for which Accounts
Receivable was debited $510 and Service Revenue was credited $51
7. A payment on account for $225 was credited to Cash for $225 and credited to Accounts
Payable for $252
Prepare a correct the Trial Balance (correct or adjust error ).
Answer:
GAGNE COMPANY
Trial Balance
June 30, 2008
Cash
Debit
$2,330 (1)
Accounts receivable
7,870 (2)
Supplies
600
Equipment
9,000 (3)
Credit
Accounts Payable
$9,289 (4)
Gagne, Capital
1,952
Gagne, Drawing
2,100 (5)
Service Revenue
15,659 (6)
Wage Expense
4,100 (7)
Repair Expense
900 (8)
__Total
$26,900
Calculation:
1.
2.
3.
4.
5.
6.
7.
8.
2600 - 630 +360 = 2330
7600 + 630 - 300 = 7870
8300 + 700 = 9000
9766 - 252 - 225 = 9,289
15000 + 300 + 300 = 21,000
15200 - 51 + 510 = 15,659
3800 + 300 = 4,100
1600 - 700 = 900
$26,900