Reference no: EM132831888

Question - The trial balance for Finders Company does not balance and the information as follows has been presented:

Finders Company Trial Balance February 29, 2020

Account Debit Credit

Cash 6,300

Accounts receivable 6,000

Supplies 400

Equipment 22,300

Computers 49,000

Accounts payable 2,800

Notes payable 18,500

Wright, Capital 50,000

Wright, Drawing 4,000

Service revenue 4,100

Salary Expense 1,400

Rent expense 800

Advertising expense 900

Utilities expense 800

Total 91,900 75,400

The following errors were detected:

1. The cash balance is overstated by $5,000.

2. Rent expense of $340 was erroneously posted as a credit rather than a debit.

3. A $6,800 credit to Service revenue was not posted.

4. A $400 debit to Accounts receivable was posted as $40.

5. The balance of Utilities expense is understated by $70.

6. A $900 purchase of supplies on account was neither journalized nor posted.

7. Equipment should be $16,490.

Requirements -

1. Prepare the corrected trial balance on February 29, 2020. Journal entries are not required.

2. Prepare the company's financial statements for the month of February 2020.