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    Correct a Trial Balance

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    The trial balance of Pear Corporation shown below does not balance.
    Trial Balance
    June 30, 2012
    Debit Credit
    Cash $ 2,780
    Accounts Receivable 7,420
    Supplies 600
    Equipment 8,300
    Accounts Payable $ 9,777
    Owner's Capital 1,952
    Owner's Drawings 1,300
    Service Revenue 15,200
    Salaries and Wages Expense 3,800
    Repair Expense 1,600
    Totals $25,800 $26,929

    An 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 $270 received from a customer on account was debited to Cash $720 and credited to Accounts Receivable $720.
    3. A withdrawal of $400 by the owner was posted as a credit to Owner's Drawings, $400 and credit to Cash $400.
    4. A debit of $300 was not posted to Salaries and 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 were 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 $235 was credited to Cash for $235 and credited to Accounts Payable for $253.

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    Solution Summary

    This solution illustrates how to correct an out-of-balance trial balance for common posting errors.