The following trial balance is prepared from the general ledger of HG's Auto Maintenance. HG'S AUTO MAINTENANCETrial BalanceOctober 31?DebitCreditCash$ 1,975?Accounts receivable2,800?Supplies500?Shop equipment13,000?Office equipment6,600?Accounts payable?$ 4,510Common Stock?22,000Dividends4,200?Repair fees earned?11,875Supplies expense8,600?Totals$37,675$38,385Because the trial balance did not balance, you decided to examine the accounting records. You found that the following errors had been made:1. A purchase of supplies on account for $245 was posted as a debit to Supplies and as a debit to Accounts Payable.2. An investment of $500 cash by a stockholder was debited to Common Stock and credited to Cash.3. In computing the balance of the Accounts Receivable
account, a debit of $600 was omitted from the computation.4. One debit of $300 to the Dividends account was posted as a credit.5. Office equipment purchased for $800 was posted to the Shop Equipment account.6. One entire entry was not posted to the general ledger. The transaction involved the receipt of $125 cash for repair services performed for cash.Prepare a corrected trial balance for the HG's Auto Maintenance as of October 31.
What will be an ideal response?
HG'S AUTO MAINTENANCE
Trial Balance
October 31
| ? | Debit | Credit |
| Casha | $ 3,100 | ? |
| Accounts receivableb | 3,400 | ? |
| Supplies | 500 | ? |
| Shop equipmentc…………………………………… | 12,200 | ? |
| Office equipmentd……………………………………. | 7,400 | ? |
| Accounts payablee………………………………………… | ? | $ 5,000 |
| Common Stockf…………………………………… | ? | 23,000 |
| Dividendsg. ……………………………. | 4,800 | ? |
| Repair fees earnedh……………………………………… | ? | 12,000 |
| Supplies expense……………………………………….. | 8,600 |
| Totals……………………………………………… | $40,000 | $40,000 |
| ? | ? | ? |
bAccounts Receivable: Bal. $2,800 + 600 (#3) = $3,400
cShop Equipment: Bal. $13,000 - 800 (#5) = $12,200
dOffice Equipment: Bal. $6,600 + 800 (#5) = $7,400
eAccounts Payable: Bal $4,510 + 490 (#1) = $5,000
fCommon Stock: Bal. $22,000 + 1,000 (#2) = $23,000
gDividends: Bal. $4,200 + 600 (#4) = $4,800
hRepair fees earned: Bal $11,875 + 125 (#6) = $12,000
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