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    Preparation of corrected trial balance.

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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.

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    https://brainmass.com/business/trial-balance/preparation-of-corrected-trial-balance-73453

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    Solution Summary

    Excel is used for preparation of an analysis of each error showing (1) the Incorrect entry, (2) the correct entry,
    And (3) the correcting entry and preparation of corrected trial balance.

    $2.19