P2-53B Correcting errors in a trial balance [15–25 min]

The trial balance for Treasure Hunt Exploration Company does not balance.

Treasure Hunt Exploration Company

Trial Balance

31-Jul-12

Cash $6,600

Accounts receivable 9,000

Supplies 200

Exploration equipment 22,600

Computers 46,000

Accounts payable $2,900

Note payable 18,900

Common stock 50,100

Dividends 1,000 4,900

Service revenue

Salary expense 1,800

Rent expense 100

Advertising expense 100

Utilities expense 700

Total $88,100 $76,800

The following errors were detected:

The cash balance is overstated by $1,000.

Rent expense of $300 was erroneously posted as a credit rather than a debit.

A $6,000 credit to Service revenue was not posted.

A $500 debit to Accounts receivable was posted as $50.

The balance of Utilities expense is understated by $90.

A $600 purchase of supplies on account was neither journalized nor posted.

Exploration equipment should be $17,160.

Requirement

1. Prepare the corrected trial balance at July 31, 2012. Journal entries are not

required.