An Examination of the Ledger and Journal Reveals the Following

question 20

Essay

An examination of the ledger and journal reveals the following errors:
1. Each of the above listed accounts has a normal balance per the general ledger.
2. Cash of $270 received from a customer on account was debited to Cash $720 and credited to Accounts Receivable $720.
3. A withdrawal of $400 by the owner was posted as a credit to Owner's Drawings, $400 and credit to Cash $400.
4. A debit of $300 was not posted to Salaries and Wages Expense.
5. The purchase of equipment on account for $700 was recorded as a debit to Repair Expense and a credit to Accounts Payable for $700.
6. Services were performed on account for a customer, $510, for which Accounts Receivable was debited $510 and Service Revenue was credited $51.
7. A payment on account for $235 was credited to Cash for $235 and credited to Accounts Payable for $253.
Instructions
Prepare a correct trial balance.

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Definitions:

Dodge Brothers

Historical figures known for their role in the early automotive industry, particularly for founding the Dodge Brothers Company.

General Motors

An American multinational corporation that designs, manufactures, markets, and distributes vehicles and vehicle parts.

Figurative Marketing

The use of metaphorical or symbolic language to promote or sell products in a way that evokes imagination.