Practice: Correcting Trial Balances

Practice: Correcting Trial Balances 1. The following preliminary trial balance for Escalade Co., a sports ticket agency, does not balance. When the ledger records are reviewed, you discover the following: a. The debits and credits in the cash account total $47,350 and $33,975, respectively. b. A billing of $2,500 to a customer on account was not recorded in the accounts receivable account. c. A payment of $1,800 made to a creditor on account was not recorded in the accounts payable account. d. The balance of the notes payable account should be $4,250. e. The correct balance of the equipment account is $75,000. f. Each account is SUPPOSED to have a normal balance, but some were recorded incorrectly. Prepare a corrected trial balance in the columns provided. Escalade Co. Trial Balance December 31, 2014 Account Name Debit Credit Debit Credit Cash 47,350 Accounts Receivable 22,100 Supplies Equipment 8,000
57,000 Accounts Payable 12,980
Notes Payable 4,520
Erin Capelli, Capital 82,420 Erin Capelli, Drawing 10,000 Service Revenue 83,750
Wages Expense 42,000
Advertising Expense Miscellaneous Expense TOTAL CORRECTED TRIAL BALANCE ORIGINAL TRIAL BALANCE 7,200 1,425
226,070 152,675