The following trial balance is prepared from the general ledger of HG's Auto Maintenance.HG'S AUTO MAINTENANCETrial BalanceOctober 31?DebitCreditCash $1,975?Accounts receivable 2,800?Supplies 500?Shop equipment 13,000?Office equipment 6,600?Accounts payable ?$ 4,510Common Stock ?22,000Dividends 4,200?Repair fees earned ?11,875Supplies expense 8,600?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 the sole 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 Stock…………………………………… | ? | 23,000 |
| Dividends. ……………………………. | 4,800 | ? |
| Repair fees earnedh…………………………………… | ? | 12,000 |
| Supplies expense…………………………………… | 8,600 |
| Totals……………………………………………… | $40,000 | $40,000 |
| ? | ? | ? |
aCash: Balance $1,975 + $1,000 (2) + 125 (#6) = $3,100
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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