Tech Support Services has the following unadjusted trial balance as of January 31, 2014.

Tech Support Services has the following unadjusted trial balance as of January 31, 2014.


Tech Support Services
Unadjusted Trial Balance
January 31, 2014
Debit
Balances
Credit
Balances
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,550
Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,050
Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,660
Prepaid Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,600
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162,000
Notes Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000
Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,200
Thad Engelberg, Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101,850
Thad Engelberg, Drawing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,000
Fees Earned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 534,000
Wages Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 306,000
Rent Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62,550
Advertising Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,850
Gas, Electricity, and Water Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,000
684,260 724,050


The debit and credit totals are not equal as a result of the following errors:

a. The cash entered on the trial balance was overstated by $8,000.
b. A cash receipt of $4,100 was posted as a debit to Cash of $1,400.
c. A debit of $12,350 to Accounts Receivable was not posted.
d. A return of $235 of defective supplies was erroneously posted as a $325 credit to Supplies.
e. An insurance policy acquired at a cost of $3,000 was posted as a credit to Prepaid Insurance.
f. The balance of Notes Payable was overstated by $21,000.
g. A credit of $3,450 in Accounts Payable was overlooked when the balance of the account was determined.
h. A debit of $6,000 for a withdrawal by the owner was posted as a debit to Thad Engelberg, Capital.
i. The balance of $28,350 in Advertising Expense was entered as $23,850 in the trial balance.
j. Miscellaneous Expense, with a balance of $4,600, was omitted from the trial balance.

Instructions

1. Prepare a corrected unadjusted trial balance as of January 31, 2014.

2. Does the fact that the unadjusted trial balance in (1) is balanced mean that there are no errors in the accounts? Explain.


Answer:

1. TECH SUPPORT SERVICES
Unadjusted Trial Balance
January 31, 2014
Debit
Balances
Credit
Balances
Cash* 20,250
Accounts Receivable 56,400
Supplies 6,750
Prepaid Insurance 9,600
Equipment 162,000
Notes Payable 54,000
Accounts Payable 16,650
Thad Engelberg, Capital 107,850
Thad Engelberg, Drawing 39,000
Fees Earned 534,000
Wages Expense 306,000
Rent Expense 62,550
Advertising Expense 28,350
Gas, Electricity, and Water Expense 17,000
Miscellaneous Expense 4,600
712,500 712,500

* $25,550 – $8,000 (a) + $2,700 (b)

2. No. The trial balance indicates only that the debits and credits are equal. Any errors that have the same effect on debits and credits will not affect the balancing of the trial balance.