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    Important information about Corrected Trial Balance

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    Please see attached excel sheet.

    Exercise: Problem P3-7A
    Course:
    Date:

    P3-7A
    This trial balance of Izo Co. does not balance.
    IZO CO.
    Trial Balance
    June 30, 2007
    Debit Credit
    Cash $2,180
    Accounts Receivable $3,370
    Supplies 800
    Equipment 3,000
    Accounts Payable 2,666
    Unearned Revenue 1,200
    Common Stock 9,000
    Dividends 800
    Service Revenue 3,480
    Salaries Expense 3,600
    Office Expense 910
    $13,680 $17,326

    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 $690 , and Accounts Receivable was credited
    for the same amount. The actual collection was for $960
    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
    3. Services were performed on account for a client for $800 Accounts Receivable was debited for
    $80 and Service Revenue was credited for $800
    4. A debit posting to Salaries Expense of $500 was omitted.
    5. A payment on account for $206 was credited to Cash for $206 and credited to Accounts
    Payable for $260
    6. Payment of a $600 cash dividend to Izo's stockholders was debited to Salaries Expense for $600
    and credited to Cash for $600

    Instructions:
    Prepare the correct trial balance. (Hint: All accounts have normal balances.)

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    This trial balance of Izo Co. does not balance.
    IZO CO.
    Trial Balance
    June 30, 2007
    Debit Credit
    Cash $2,180
    Accounts Receivable $3,370
    Supplies 800
    Equipment 3,000
    Accounts Payable 2,666
    Unearned Revenue 1,200
    Common Stock 9,000
    Dividends 800
    Service Revenue 3,480
    Salaries Expense 3,600
    Office Expense 910
    $13,680 $17,326

    Each of the listed ...

    Solution Summary

    The solution explains how to prepare a corrected trial balance for Izo Co.

    $2.19