P2-53B Correcting
errors in a trial balance [15–25 min]
The trial balance for Treasure Hunt Exploration Company does not balance.
ACC 205 Week 1 Treasure Hunt Exploration Company
The trial balance for Treasure Hunt Exploration Company does not balance.
ACC 205 Week 1 Treasure Hunt Exploration Company
P2-53B - Treasure Hunt
Exploration Company
The following errors were detected:
a. The cash balance is overstated by $1,000.
b. Rent expense of $300 was erroneously posted as a credit rather than a debit.
c. A $6,000 credit to Service revenue was not posted.
d. A $500 debit to Accounts receivable was posted as $50.
e. The balance of Utilities expense is understated by $90.
f. A $600 purchase of supplies on account was neither journalized nor posted.
g. Exploration equipment should be $17,160.
Requirement
1. Prepare the
corrected trial balance at July 31, 2012. Journal entries are not required.The following errors were detected:
a. The cash balance is overstated by $1,000.
b. Rent expense of $300 was erroneously posted as a credit rather than a debit.
c. A $6,000 credit to Service revenue was not posted.
d. A $500 debit to Accounts receivable was posted as $50.
e. The balance of Utilities expense is understated by $90.
f. A $600 purchase of supplies on account was neither journalized nor posted.
g. Exploration equipment should be $17,160.
Requirement
SOLUTION PREVIEW
Req. 1
Treasure Hunt Exploration Company
Trial Balance
Supplies 800*
Trial Balance
July 31, 2012
ACCOUNT
DEBIT CREDIT
Cash $ 5,600*
Accounts
receivable 9,450* Supplies 800*
