Prepare a Corrected Trial Balance by Changing Incorrect Amounts and Placing

question 88

Essay

Prepare a corrected trial balance by changing incorrect amounts and placing each amount in the proper column.
$\begin{array}{c}\text {Wesley's Towing Service}\\\text {Trial Balance}\\\text {September 30, 20--}\\\\\begin{array}{lr}\underline{\text { Account Title }} & \underline{\text { Debit }}&\underline{\text { Credit }}\\\text { Cash } & 13,000 \\\text { Accounts Receivable } & 970 \\\text { Supplies } & 200 \\\text { Prepaid Insurance } & 2,300 \\\text { Equipment } & 10,000\\\text { Accounts Payable } && 5,500 \\ \text { Wesley, Capital } && 20,500 \\\text { Wesley, Drawing } && 320 \\\text { Repair Fees } && 9,000\\\text { Wages Expense } & 6,500 \\\text { Rent Expense } & 1,400 \\\text { Advertising Expense } & 450 \\\text { Utilities Expense } & \underline{500 }&\underline{\quad\quad}\\&35,320&35,320\end{array}\end{array}$
a.
Be sure all accounts have been listed with the appropriate debit or credit balance and check column totals.
b.
The debits to the Cash account are $37,421,and the credits are $34,381.
c.
A $500 payment to a creditor was entered in the journal,but was not posted to the Accounts Payable account.Cash was properly posted.
d.
The Advertising Expense total has a transposition error of $90.
e.
Accounts Receivable contains a slide error.

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Definitions:

Price Level(P)

A measure of the average prices of goods and services in an economy, often used to compare the overall cost of living or inflation rate over time.

Money Demanded

The total amount of money that households and businesses want to hold at a given time, influenced by interest rates, income, and prices.

Interest Rate

The rate, calculated as a percentage of the principal, which a lender requires a borrower to pay for borrowing assets.

Money Market

A segment of the financial market in which financial instruments with high liquidity and very short maturities are traded.