Preparation of corrected trial balance.

(See attached file for full problem description)

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Rebecca Sherrick Management Services Inc. began business on Januaary 1 2002, with a capital investment of $120,000. The company manages condominiums for owners (Service Revenue) and rents space in its own office building (Rent Revenue). The trial balance and adjusted trial balance columns of the work sheet at the end of the first year are as follows

REBECCA SHERRICK MANAGEMENT SERVICES INC.
Work Sheet
For the Year Ended December 31, 2002

Adjusted
Trial Balance Trial Balance

Account Titles Dr. Cr. Dr. Cr.
Cash 14,500 14,500
Accounts Receivable 23,600 23,600
Prepaid Insurance 3,100 1,600
Land 56,000 56,000
Building 106,000 106,000
Equipment 48,000 48,000
Accounts Payable 10,400 10,400
Unearned Rent Revenue 5,000 1,800
Mortgage Payable 100,000 100,000
Common Stock 90,000 90,000
Retained Earnings 30,000 30,000
Dividends 20,000 20,000
Service Revenue 75,600 75,600
Rent Revenue 23,000 26,200
Salaries Expense 30,000 30,000
Advertising Expense 17,000 17,000
Utilities Expense 15,800 ______ 15,800
Totals 334,000 334,000
________ _______
Insurance Expense 1,500
Depreciation Expense- Building 2,500
Accumulated Depreciation- Building 2,500
Depreciation Expense- Equipment 3,900
Accumulated Depreciation- Equipment 3,900
Interest Expense 10,000
Interest Payable ______ 10,000
Totals 350,400 350,400
_______ _______
INSTRUCTION
? Prepare a Complete work sheet
? Journalize the closing entries.

Page 2
Diane Torres, CPA, was retained by Donerigh TV Repair Inc. to prepare financial statements for April 2002. Torres accumulated all the ledger balances per Doneright's records and found the following.

DONERIGHT TV REPAIR INC.
Trial Balance
April 30, 2002

Debit Credit
Cash $ 4,100
Accounts Receivable 3,200
Supplies 800
Equipment 10,600
Accumulated Depreciation $ 1,350
Accounts Payable 2,100
Salaries Payable 500
Unearned Revenue 890
Common Stock 10,000
Retained Earnings 2,900
Service Revenue 5,450
Salaries Expense 3,300
Advertising Expense 400
Miscellaneous Expense 290
Depreciation Expense 500 ______
$23,190 $23,190
_______ _______
Diane Torres reviewed the records and found the following errors.
1. Cash received from a customer on account was recorded as $950 instead of $590.
2. A payment of $30 for advertising expense was entered as a debit to Miscellaneous Expense
$30 and a credit to Cash $30.
3. The first salary payment this month was for $1,900, which included $500 of salaries payable
on March 31. The payment was recorded as a debit to Salaries Expense $1,900 and a credit
to Cash $1,900. (No reversing entries were made on April 1.)
4. The purchase on account of a printer costing $340 was recorded as a debit to Supplies and a
credit to Accounts Payable for $340.
5. A cash payment of repair expense on equipment for $86 was recorded as a debit to Equip-
ment $68 and a credit to Cash $68.

INSTRUCTIONS
? Prepare an analysis of each error showing (1) the Incorrect entry, (2) the correct entry,
And (3) the correcting entry.
* Prepare a correct trial balance.