The trial balance of Syed Moiz Co. shown below does not balance.

SYED MOIZ CO.
Trial Balance
June 30, 2010

Debit

Credit

Cash

$ 3,340

Accounts Receivable

$ 2,731

Supplies

1,200

Equipment

2,600

Accounts Payable

3,666

Unearned Revenue

1,100

S. Moiz, Capital

8,000

S. Moiz, Drawing

800

Service Revenue

2,480

Salaries Expense

3,200

Office Expense

810

$12,441

$17,486

Each of the listed accounts has a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors.

1. Cash received from a customer in payment of its account was debited for $480, and Accounts Receivable was credited for the same amount.The actual collection was for $840.

2. The purchase of a computer on account for $620 was recorded as a debit to Supplies for $620 and a credit to Accounts Payable for $620.

3. Services were performed on account for a client for $890. Accounts Receivable was debited for $890, and Service Revenue was credited for $89.

4. A debit posting to Salaries Expense of $700 was omitted.

5.

6. The withdrawal of $600 cash for Moiz’s personal use was debited to Salaries Expense for $600 and credited to Cash for $600.

Instructions

Prepare a correct trial balance. (Hint: It helps to prepare the correct journal entry for the transaction described and compare it to the mistake made).

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