P2-53B Correcting errors in a trial balance
The trial balance for Treasure Hunt Exploration Company does not balance.
Treasure Hunt Exploration Company
July 31, 2012
Accounts receivable 9,000
Exploration equipment 22,600
Accounts payable 2,900
Note payable 18,900
Common stock 50,100
Service revenue 4,900
Salary expense 1,800
Rent expense 100
Advertising expense 100
Utilities expense 700
Total $88,100 $76,800
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.