Question

The following trial balance of Pronghorn Traveler Corporation does not balance. Pronghorn Traveler Corporation Trial Balance April 30, 2020 Debit Credit Cash $6,632 Accounts Receivable 5,600 Supplies 3,327 Equipment 6,460 Accounts Payable $7,404 Common Stock 8,360 Retained Earnings 2,360 Service Revenue 5,560 Office Expense 4,680 $26,699 $23,684 An examination of the ledger shows these errors.
1. Cash received from a customer on account was recorded (both debit and credit) as $1,940 instead of $2,210.
2. The purchase on account of a computer costing $3,080 was recorded as a debit to Office Expense and a credit to Accounts Payable.
3. Services were performed on account for a client, $2,610, for which Accounts Receivable was debited $2,610 and Service Revenue was credited $585.
4. A payment of $455 for telephone charges was entered as a debit to Office Expense and a debit to Cash.
5. The Service Revenue account was totaled at $5,560 instead of $5,640.

Answer 1

Answer:

adjusting entries:

1. Cash received from a customer on account was recorded (both debit and credit) as $1,940 instead of $2,210.

Dr Cash 270

    Cr Accounts receivable 270

2. The purchase on account of a computer costing $3,080 was recorded as a debit to Office Expense and a credit to Accounts Payable.

Dr Equipment 3,080

    Cr Office expense 3,080

3. Services were performed on account for a client, $2,610, for which Accounts Receivable was debited $2,610 and Service Revenue was credited $585.

Dr Accounts receivable 0

    Cr Service revenue 2,025

4. A payment of $455 for telephone charges was entered as a debit to Office Expense and a debit to Cash.

Dr Office expense 0

    Cr Cash 910

5. The Service Revenue account was totaled at $5,560 instead of $5,640.

Cr Service revenue 80

the adjusted trial balance should be:

                                              Debit            Credit

Cash                                      $5,992

Accounts Receivable           $5,330

Supplies                                $3,327

Equipment                            $9,540

Accounts Payable                                        $7,404

Common Stock                                             $8,360

Retained Earnings                                        $2,360

Service Revenue                                          $7,665

Office Expense                     $1,600                        

Totals                                   $25,789          $25,789