A New Employee with Little Accounting Knowledge Prepared the Following $\quad$

question 153

Essay

A new employee with little accounting knowledge prepared the following trial balance. Prepare a corrected trial balance as of December 31, 2019, based on the incorrect trial balance and the additional data. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {Dillon's Publishing Service}$
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {Trial Balance}$
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {December 31,2019}$
$\begin{array} { l r r } & \text { Debit } & \text { Credit } \\ \text { Cash } & \$ 35,000 & \\ \text { Accounts receivable } & 11,500 & \\ \text { Office supplies } & 1,500 & \\ \text { Prepaid insurance } & 800 & \\ \text { Office equipment } & 14,000 & \\ \text { Accounts payable } & & \$ 18,000 \\ \text { Note payable } & & 9,250 \\ \text { Martin Dillon, Capital } & & 34,000 \\ \text { Martin Dillon, Withdrawals } & 2,800 & \\ \text { Service revenue } & 71,300 & \\ \text { Salary expense } & & 9,200 \\ \text { Rent expense } & & 7,500 \\ \text { Advertising expense } & \underline{3,500 }&\underline{\quad\quad} \\ \text { Total } &\underline{\underline{ \$ 140,400}} & \underline{\underline{\$ 77,950 }}\end{array}$ Additional data:
- All accounts have a normal balance.
- Service revenue has a transposition error.
- Note payable is understated by $7,250.

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Definitions:

Compromise

A method of resolving disagreements where each party gives up something that it wants in order to reach an agreement.

Unconsciously Believes

Refers to beliefs that individuals hold without being aware of them, which can influence thoughts, feelings, and behaviors beyond conscious awareness.

Irrational

Characterized by actions or thoughts that lack reason or sound judgment, often driven by emotions rather than logical reasoning.

Emotional Part

A component of human psychology that involves feelings, moods, and affective states.