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An inexperienced bookkeeper prepared the following trial balance that does not balance. Prepare a correct trial balance, assuming all account balances are normal.
An inexperienced bookkeeper prepared the following trial balance that does not balance. Prepare a correct trial balance, assuming all account balances are normal. CULLUMBER COMPANY
Trial Balance December 31, 2017
Debit Credit
Cash $22,720
Prepaid Insurance $ 4,860
Accounts Payable 4,420
Unearned Service Revenue 3,890
Common Stock 10,000
Retained Earnings 6,600
Dividends 7,020
Service Revenue 26,960
Salaries and Wages Expense 12,580
Rent Expense 4,690
$39,190 $64,550
Answer:DEBIT SIDE $51,870CREDIT SIDE $51,870Explanation:Preparation of the correct trial balance,Trial balanceDEBIT SIDEDr Cash 22,720Dr Prepaid insurance 4,860Dr Dividends 7,020Dr Salaries and wages expense 12,580Dr Rent expense 4,690TOTAL $51,870CREDIT SIDECr Account payable 4,420Cr Unearned service revenue 3,890Cr Common Stock 10,000Cr Retained Earnings 6,600Cr Service revenue 26,960TOTAL $51,870Therefore the corrected trial balance DEBIT SIDE is $51,870 while the CREDIT SIDE is $51,870...
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