- Prepare the company’s trial balance at June 30, 2012, listing accounts in proper sequence, as illustrated in the chapter. For example, Accounts Receivable comes before Land. List the expense with the largest balance first, the expense with the next largest balance second, and so on.
- Prepare the financial statement for the month ended June 30, 2012, that will tell the company the results of operations for the month.
(Learning Objective 6: Construct and use a trial balance) The trial balance of Garvey, Inc., at September 30, 2012, does not balance:
The accounting records hold the following errors:
- Recorded a $100 cash revenue transaction by debiting Accounts Receivable. The credit entry was correct.
- Posted a $1,000 credit to Accounts Payable as $100.
- Did not record utilities expense or the related account payable in the amount of $500.
- Understated Common Stock by $200.
- Omitted Insurance Expense of $3,700 from the trial balance.