Question No. 2 The trial balance of the Mukhtar Company shown below does not balance. Mukhtar Company Trial Balance September 30, 2019 Debit Credit Cash $ 3,850 Accounts Receivable $ 2.750 Prepaid Insurance 700 Equipment 12,000 Page 1 of 2 4,500 560 11,700 Accounts Payable Unearned Service Revenue Common Stock Service Revenue Salaries and Wages Expense Advertising Expense Utilities Expense 8,690 4,200 1,100 800 $30,800 $20,050 Your review of the ledger reveals that each account has a normal balance. You also discover the following errors. 1. The totals of the debit sides of Prepaid Insurance, Accounts Payable, and Utilities Expense were each understated $100. 2. Transposition errors were made in Accounts Receivable and Service Revenue. Based on postings made, the correct balances were $2,570 and $8,960, respectively. 3. A debit posting to Salaries and Wages Expense of $200 was omitted. 4. A $1,000 cash dividend was debited to Common Stock for $1,000 and credited to Cash for $1,000. 5. A $520 purchase of supplies on account was debited to Equipment for $520 and credited to Cash for $520. 6. A cash payment of $450 for advertising was debited to Advertising Expense for $45 and credited to Cash for $45. 7. A collection from a customer for $420 was debited to Cash for $420 and credited to Accounts Payable for $420. Instructions
a) Prepare a correct trial balance. Note that the chart of accounts includes the following: Dividends and Supplies.
b) Make T accounts and post the corrections in these accounts to reach at corrected trial balance