The Trial Balance of Red House Painters Shown Below Does

Essay

The trial balance of Red House Painters shown below does not balance. $\begin{array}{c}\text {RED HOUSE PAINTERS}\\\text {Trial Balance}\\\text {June 30, 2018}\\\begin{array}{lcc}& \underline{\text { Debit} }& \underline{\text { Credit }}\\\text { Cash } & \$ 2,780 & \\ \text { Accounts Receivable } & 7,420 & \\ \text { Supplies } & 600 & \\ \text {Equipment. } & 8,300 & \\ \begin{array}{l}\text { Accounts Payable } \\\text { Common Stock }\end{array} & & \begin{array}{r}\$ 9.777 \\1.952\end{array} \\\text { Dividends } & 1,300 & \\ \text {Service Revenue } & & 15,200 \\ \text {Salaries and Wages Expense } & 3,800 & \\ \text { Maintenance and Repairs Exper } & \underline{ 1,600 }& \\ \text {Totals } & \underline{ \$ 25,800} & \underline{ \$ 26,929} \\\end{array}\end{array}$

An examination of the ledger and journal reveals the following errors:
1. Each of the above listed accounts has a normal balance per the general ledger.
2. Cash of $270 received from a customer on account was debited to Cash $720 and credited to Accounts Receivable $720.
3. A dividend of $400 was posted as a credit to Dividends $400 and credit to Cash $400.
4. A debit of $300 was not posted to Salaries and Wages Expense.
5. The purchase of equipment on account for $700 was recorded as a debit to Maintenance and Repairs Expense and a credit to Accounts Payable for $700.
6. Services were performed on account for a customer, $510, for which Accounts Receivable was debited $510 and Service Revenue was credited $51.
7. A payment on account for $235 was credited to Cash for $235 and credited to Accounts Payable for $253.
Instructions
Prepare a correct trial balance.