The trial balance of Sam’s Deli Inc. at October 31, 2020, does not balance: The accounting records contain the following errors: -Recorded a $1,000 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 $200. -Understated Share Capital by $1,100. -Omitted insurance expense of $1,000 from the trial balance. Q1: Prepare the correct trial balance at October 31, 2020, complete with a heading. Journal entries are not required but will be helpful in correcting the trial balance. Q2: Organize the elements of the trial balance in a way that would assist a bank manager who has to decide whether to loan money to Sam’s Deli.
The
The accounting records contain the following errors:
-Recorded a $1,000 cash revenue transaction by debiting
-Posted a $1,000 credit to Accounts Payable as $100.
-Did not record utilities expense or the related account payable in the amount of $200.
-Understated Share Capital by $1,100.
-Omitted insurance expense of $1,000 from the trial balance.
Q1: Prepare the correct trial balance at October 31, 2020, complete with a heading.
Q2: Organize the elements of the trial balance in a way that would assist a bank manager who has to decide whether to loan money to Sam’s Deli.
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