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 ownerâ€™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.