This trial balance of Washburn Co. does not balance.
WASHBURN CO.
Trial Balance
June 30, 2017 |
|
Debit |
Credit |
| Cash |
|
mce_markernbsp;3,090 |
| Accounts Receivable |
mce_markernbsp;3,190
|
|
| Supplies |
800
|
|
| Equipment |
3,000
|
|
| Accounts Payable |
|
3,686 |
| Unearned Service Revenue |
1,200
|
|
| Common Stock |
|
9,000 |
| Dividends |
800 |
|
| Service Revenue |
|
3,480 |
| Salaries and Wages Expense |
3,600
|
|
| Utilities Expense |
910
|
|
| Total |
$13,500
|
$19,256 |
Each of the listed accounts has a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors:
1. Cash received from a customer on account was debited for $760, and Accounts Receivable was credited for the same amount. The actual collection was for $706.
(My thoughts was to Dr. Cash 760 and Cr. Accounts Receivables 760)
2. The purchase of a printer on account for $340 was recorded as a debit to Supplies for $340 and a credit to Accounts Payable for $340.
(My thoughts was to Dr. Supplies and Equipment 340 and Cr. Accounts Payable 340.)
3. Services were performed on account for a client for $900. Accounts Receivable was debited for $90 and Service Revenue was credited for $900. (My thoughts was to Cr. Service Revenue 900 and Dr. Accounts Receivable 90.)
4. A debit posting to Salaries and Wages Expense of $700 was omitted. (My thoughts was to Dr. Salaries and Wages Exp.700.)
5. A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260. (My thoughts was to Dr. Accounts payable 466.)
6. Payment of a $600 cash dividend to Washburn Co.'s stockholders was debited to Salaries and Wages Expense for $600 and credited to Cash for $600. (My thoughts are to Dr. Dividends, Salaries and Wages Exp. 600 and Cr. Cash 600. I understand that I have that correct.)
I'm having a hard time correcting this Trial Balance. I can see Unearned Service Rev. and Utilities Exp. doesn't change, but these previous numbers are confusing me along with the corrections. Are my thoughts before Step 6 on the right track?