The Following Trial Balance Was Prepared from the General Ledger

question 101

Essay

The following trial balance was prepared from the general ledger of Hal's Auto Repair.
$\begin{array}{c} \text { HAL'S AUTO REPAIR } \\ \text { Trial Balance } \\ \text { October 31 } \\\begin{array}{|l|c|c|}\hline & \text {Debit }& \text { Credit}\\ \hline\text { Cash } & \$ 975 & \\\hline \text { Accounts receivable } & 3,800 & \\\hline \text { Supplies } & 500 & \\\hline \text { Repair equipment } & 13,000 & \\\hline \text { Office equipment } & 6,600 & \\\hline \text { Accounts payable } & & \$ 4,510 \\\hline \text { Common stock } & & 10,000 \\\hline \text { Retained earnings } & & 13,000 \\\hline \text { Dividends } & 4,200 & \\\hline \text { Repair fees earned } & & 10,875 \\\hline \text { Supplies expense } & \underline{8,600} & \\\hline \text { Totals } & \underline { \$ 37,675 }&\underline { \$ 38,385} \\\hline\end{array}\end{array}$ Since 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 Repair Equipment account.
6.One entire entry was not posted to the general ledger.The transaction involved the receipt
of $125 cash at the time repair services were performed.
Prepare a corrected trial balance for the Hal's Auto Repair as of October 31.

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Definitions:

Supply Chain

The network of all the individuals, organizations, resources, activities, and technology involved in the creation and sale of a product, from the delivery of source materials from the supplier to the manufacturer, and to its eventual delivery to the end user.

Key Factors

Critical elements or variables that significantly impact the outcome of a process, project, or evaluation.

Profitability

The financial measure indicating the extent to which a business or activity generates income exceeding its costs and expenses, reflecting its economic success.

Supply Chain

A supply chain encompasses all stages involved in fulfilling a customer demand, from raw materials to the delivery of the final product.