Important information about Corrected Trial Balance
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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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Solution Summary
The solution explains how to prepare a corrected trial balance for Izo Co.
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Please see the attached file
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 ...
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