prepare a correct trial balance 581572

Joe Edmonds, CPA, was retained by Clark Cable Inc. to prepare financial statements for April 2011. Edmonds accumulated all the ledger balances per Clark’s records and found the following.

CLARK CABLE INC.

Trial Balance

April 30, 2011

Debit

Credit

Cash

$ 4,100

Accounts Receivable

3,200

Supplies

800

Equipment

10,600

Accumulated Depreciation

$ 1,350

Accounts Payable

2,100

Salaries Payable

700

Unearned Revenue

890

Common Stock

10,000

Retained Earnings

2,900

Service Revenue

5,450

Salaries Expense

3,300

Advertising Expense

600

Miscellaneous Expense

290

Depreciation Expense

500

$23,390

$23,390

Joe Edmonds reviewed the records and found the following errors.

1. Cash received from a customer on account was recorded as $960 instead of $690.

2. A payment of $65 for advertising expense was entered as a debit to Miscellaneous Expense $65 and a credit to Cash $65.

3. The first salary payment this month was for $1,900, which included $700 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 $290 was recorded as a debit to Supplies and a credit to Accounts Payable for $290.

5. A cash payment of repair expense on equipment for $95 was recorded as a debit to Equipment $59 and a credit to Cash $59.

Instructions

(a) Prepare an analysis of each error showing (1) the incorrect entry, (2) the correct entry, and

(3) the correcting entry. Items 4 and 5 occurred on April 30, 2011.

(b) Prepare a correct trial balance.