Mascot Co. Unadjusted Trial balance For the Month Ending july 31, 2014 Debit balances Credit balances Cash .................................................................. 36,000 Accounts Receivable.................................................... 112,600 Prepaid Insurance ...................................................... 18,000 Equipment............................................................. 375,000 Accounts Payable ...................................................... 53,300 Salaries Payable........................................................ 7,500 Samuel Parson, Capital ................................................. 297,200 Samuel Parson, Drawing ................................................ 17,000 Service Revenue ....................................................... 682,000 Salary Expense......................................................... 396,800 Advertising Expense.................................................... 73,000 Miscellaneous Expense ................................................. 11,600 1,189,300 1,189,300
Answer:
1. The Debit column total is added incorrectly. The sum is $890,700 rather than $1,189,300.
2. The trial balance should be dated “July 31, 2014,” not “For the Month Ending July 31, 2014.”
3. The Accounts Receivable balance should be in the Debit column.
4. The Accounts Payable balance should be in the Credit column.
5. The Samuel Parson, Drawing, balance should be in the Debit column.
6. The Advertising Expense balance should be in the Debit column.
A corrected trial balance would be as follows:
MASCOT CO. Unadjusted Trial Balance July 31, 2014 Debit Balances
Credit Balances
Cash 36,000 Accounts Receivable 112,600 Prepaid Insurance 18,000 Equipment 375,000 Accounts Payable 53,300 Salaries Payable 7,500 Samuel Parson, Capital 297,200 Samuel Parson, Drawing 17,000 Service Revenue 682,000 Salary Expense 396,800 Advertising Expense 73,000 Miscellaneous Expense 11,600 1,040,000 1,040,000