Solution:SMART TOTS CHILD CARETrial BalanceAugust 31, 2015Account TitleBalanceDebitCreditCash$ 10,100Accounts Receivable15,000Office Supplies1,700Prepaid Insurance3,200Equipment78,500 Accounts Payable$ 4,000Notes Payable50,000Common Stock51,700Dividends2,600 Service Revenue9,700Salaries Expense3,400Rent Expense500Advertising Expense400Total$ 115,400$ 115,400Explanations:h.Service Revenue should increase by $5,000.i.Prepaid Insurance should increase by $2,400 ($1,200 × 2).Prepare the corrected trial balance as of August 31, 2015. Journal entries are not required.
P2-34ASolution:TREASURE HUNT EXPLORATION COMPANYTrial BalanceFebruary 28, 2015Account TitleBalanceDebitCreditCash$ 1,300 Accounts Receivable6,360 Office Supplies1,300 Computers16,490 Exploration Equipment49,000 Accounts Payable$ 3,700 Notes Payable18,500 Common Stock50,000 Dividends4,000 Service Revenue10,900 Salaries Expense1,400 Rent Expense1,480 Advertising Expense900 Utilities Expense870 Total$ 83,100 $ 83,100 Explanations:b.Increase Rent Expense by $680 ($340 × 2).c.Increase Service Revenue by $6,800.d.Increase Accounts Receivable by $360 ($400 − $40).e.Increase Utilities Expense by $70.f.Increase Office Supplies and Accounts Payable by $900 each.g.Decrease Computers by $5,810 ($22,300 − $16,490). Prepare the corrected trial balance at February 28, 2015. Journal entries are not required.