The trial balance for Finders Company does not balance and the information as follows has been presented:
|
Finders Company |
||
|
Trial Balance |
||
|
February 29, 2020 |
||
|
Account |
Debit |
Credit |
|
Cash |
6,300 |
|
|
Accounts receivable |
6,000 |
|
|
Supplies |
400 |
|
|
Equipment |
22,300 |
|
|
Computers |
49,000 |
|
|
Accounts payable |
2,800 |
|
|
Notes payable |
18,500 |
|
|
Wright, Capital |
50,000 |
|
|
Wright, Drawing |
4,000 |
|
|
Service revenue |
4,100 |
|
|
Salary Expense |
1,400 |
|
|
Rent expense |
800 |
|
|
Advertising expense |
900 |
|
|
Utilities expense |
800 |
|
|
Total |
91,900 |
75,400 |
The following errors were detected:
- The cash balance is overstated by $5,000.
- Rent expense of $340 was erroneously posted as a credit rather than a debit.
- A $6,800 credit to Service revenue was not posted.
- A $400 debit to Accounts receivable was posted as $40.
- The balance of Utilities expense is understated by $70.
- A $900 purchase of supplies on account was neither journalized nor posted.
- Equipment should be $16,490.
Requirement
1. Prepare the corrected trial balance on February 29, 2020. Journal entries are not required.
2. Prepare the company’s financial statements for the month of February 2020.