Reference no: EM131769427
The following trial balance was prepared from the ledger accounts of Sanchez Company
| Account Title |
Debit |
Credit |
| Cash |
68,900 |
| Accounts Receivable |
30,000 |
| Supplies |
1,800 |
| Prepaid Insurance |
3,600 |
| Land |
12,000 |
| Accounts Payable |
9,600 |
| Common Stock |
100,000 |
| Retained Earnings |
27,510 |
| Dividends |
8,000 |
| Service Revenue |
60,000 |
| Rent Expense |
9,600 |
| Salaries Expense |
31,500 |
| Operating Expenses |
32,400 |
| TOTALS |
$185,800 |
$209, 110 |
When the trial balance failed to balance, the accountant reviewed the records and discovered the following errors:
1. The company received $560 as payemnt for services rendered. The credit to Service Revenue was recorded correctly, but the debit to Cash was recorded as $650.
2. A $900 receipt of cash that was received from a customer on accounts receivable was not recorded.
3. A $600 purchase of supplies on account was properly recorded as a debit to the Supplies account. However, the credit to Accounts Payable was not recorded.
4. Land valued at $12,000 was contributed to the business in exchange for common stock. The entry to record the transaction was recorded as a $12,000 credit to both the Land account and the Common Stock account.
5. A $500 rent payment was properly recorded as a credit to Cash. However, the Salaries Expense account was incorrectly debited for $500
REQUIRED: Based on this information, prepare a corrected trial balance for Sanchez Comapny