After Klondike Assay Services Inc. had completed all postings for March in the current year (2014)

After Klondike Assay Services Inc. had completed all postings for March in the current year (2014), the sum of the balances in the following accounts payable ledger did not agree with the $37,600 balance of the controlling account in the general ledger.




NAME C. D. Greer and Son
ADDRESS 972 S. Tenth Street
Date Item
Post.
Ref. Debit Credit Balance
2014
Mar. 17 P30 3,750 3,750
27 P31 12,000 15,750
NAME Castle Chemical Supplies Inc.
ADDRESS 1170 Mattis Avenue
Date Item
Post.
Ref. Debit Credit Balance
2014
Mar. 1 Balance  8,300
9 P30 6,000 14,000
12 J7 300 13,700
20 CP23 5,800 7,900
NAME Cutler and Powell
ADDRESS 717 Elm Street
Date Item
Post.
Ref. Debit Credit Balance
2014
Mar. 1 Balance  6,100
18 CP23 6,100 —
29 P31 7,800 7,800
NAME Hudson Bay Minerals Co.
ADDRESS 1240 W. Main Street
Date Item
Post.
Ref. Debit Credit Balance
2014
Mar. 1 Balance  4,750
10 CP22 4,750 —
17 P30 3,700 3,700
25 J7 1,000 1,700
NAME Valley Power
ADDRESS 915 E. Walnut Street
Date Item
Post.
Ref. Debit Credit Balance
2014
Mar. 5 P30 3,150 3,150

Assuming that the controlling account balance of $37,600 has been verified as correct, (a) determine the error(s) in the preceding accounts and (b) prepare a listing of accounts payable creditor balances (from the corrected accounts payable subsidiary ledger).


Answer:
a. Two errors were made in balancing the accounts in the subsidiary ledger:

(1) The Castle Chemical Supplies Inc. transaction of March 9 should have resulted in a balance of $14,300 instead of $14,000, and the account balance at March 12 should have been $14,000 instead of $13,700. The account balance at March 20 should have been $8,200 instead of $7,900.

(2) The Hudson Bay Minerals Co. transaction of March 25 should have resulted in a balance of $2,700 instead of $1,700.


b.
KLONDIKE ASSAY SERVICES INC.
Accounts Payable Creditor Balances
March 31, 2014
C. D. Greer and Son $15,750
Castle Chemical Supplies Inc. 8,200
Cutler and Powell 7,800
Hudson Bay Minerals Co. 2,700
Valley Power 3,150
Total accounts payable $37,600