The Following Trial Balance Is Prepared from the General Ledger

question 35

Essay

The following trial balance is prepared from the general ledger of HG's Auto Maintenance, Inc. $\begin{array}{c} \text {HG'S AUTO MAINTENANCE, Inc.}\\ \text { Trial Balance}\\ \text { October 31}\\\\\begin{array}{lll}\\\text {Cash}\\\text {Accounts receivable}\\\text {Supplies}\\\text {Shop equipment}\\\text {Office equipment}\\\text {Accounts payable}\\\text {Common stock}\\\text {Dividends}\\\text {Repair fees earned}\\\text {Supplies expense}\\\text {Totals}\end{array}\begin{array}{rr}\text { Debit } & \text { Credit } \\\hline \$ 1,975 & \\2,800 & \\500 & \\13,000 & \\6,600 & \\& \$ 4,510 \\& 22,000 \\4,200 & \\& 11,875 \\8,600 & \\\hline \underline{\$ 37675} &\underline{ \$ 38385 }\end{array}\end{array}$
Because the trial balance did not balance, you decided to examine the accounting records. You found that the following errors had been made:
1. A purchase of supplies on account for $245 was posted as a debit to Supplies and as a debit to Accounts Payable.
2. An investment of $500 cash by the owner was debited to Common Stock and credited to Cash.
3. In computing the balance of the Accounts Receivable account, a debit of $600 was omitted from the computation.
4. One debit of $300 to the Dividends account was posted as a credit.
5. Office equipment purchased for $800 was posted to the Shop Equipment account.
6. One entire entry was not posted to the general ledger. The transaction involved the receipt of $125 cash for repair services performed for cash.
Prepare a corrected trial balance for the HG's Auto Maintenance, Inc.e as of October 31.

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