Correcting errors in a trial balance The trial balance of Creative Tots Child Care does not balance.
The following errors are detected:
a. Cash is understated by $1,000.
b. A $4,800 debit to Accounts Receivable was posted as a credit.
c. A $1,700 purchase of office supplies on account was neither journalized nor posted.
d. Equipment was incorrectly transferred from the ledger as $87,500. It should have been transferred as $80,000.
e. Salaries Expense is overstated by $800.
f. A $800 cash payment for advertising expense was neither journalized nor posted.
g. A $160 cash dividend was incorrectly journalized as $1,600.
h. Service Revenue was understated by $4,000.
i. A 12-month insurance policy was posted as a $1,300 credit to Prepaid Insurance. Cash was posted correctly. Prepare the corrected trial balance at August 31, 2017. Journal entries are not required.
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