financial accounting
The trial balance of Dominic Company shown below does not balance.
DOMINIC COMPANY
Trial Balance
May 31, 2015
Debit
Credit
Cash
$5,460
Accounts Receivable $2,740
Prepaid Insurance 850
Equipment 13,610
Accounts Payable 6,110
Unearned Service Revenue 710
Common Stock 13,310
Service Revenue 8,680
Salaries and Wages Expense 4,350
Advertising Expense 950
Utilities Expense
800
$34,460
$23,110
Your review of the ledger reveals that each account has a normal balance. You also discover the following errors.
1. The totals of the debit sides of Prepaid Insurance, Accounts Payable, and Utilities Expense were each understated $100.
2. Transposition errors were made in Accounts Receivable and Service Revenue. Based on postings made, the correct balances were $2,470 and $8,860, respectively.
3. A debit posting to Salaries and Wages Expense of $200 was omitted.
4. A $1,360 cash dividend was debited to Common Stock for $1,360 and credited to Cash for $1,360.
5. A $590 purchase of supplies on account was debited to Equipment for $590 and credited to Cash for $590.
6. A cash payment of $660 for advertising was debited to Advertising Expense for $66 and credited to Cash for $66.
7. A collection from a customer for $620 was debited to Cash for $620 and credited to Accounts Payable for $620.
Prepare a correct trial balance. (Hint: It helps to prepare the correct journal entry for the transaction described and compare it to the mistake made.)
