Correcting errors in a trial balance

The trial balance of Building Blocks Child Care does not balance.

The following errors are detected:

a. Cash is understated by $4,000.

b. A $2,000 debit to Accounts Receivable was posted as a credit.

c. A $1,200 purchase of office supplies on account was neither journalized nor posted.

d. Equipment was incorrectly transferred from the ledger as $88,000. It should have been transferred as $87,700.

e. Salaries Expense is overstated by $100.

f. A $300 cash payment for advertising expense was neither journalized nor posted.

g. A $100 owner’s withdrawal of cash was incorrectly journalized as $1,000.

h. Service Revenue was understated by $4,000.

i. A 12-month insurance policy was posted as a $2,000 credit to Prepaid Insurance. Cash was posted correctly.

Prepare the corrected trial balance as of May 31, 2015. Journal entries are not required.

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