Yin & Yang Video has the following unadjusted trial balance as of January 31, 2010:      

            

Yin & Yang Video               

Unadjusted Trial Balance                 

January 31, 2010                   

 

             Debit Balances            Credit Balances

Cash   19,000          

Accounts Receivable   34,100          

Supplies          4,464

Prepaid Insurance       4,800

Equipment      108,000        

Notes Payable                             45,000

Accounts Payable                         9,650

Chea Wynn, Capital                69,400

Chea Wynn, Drawing  23,500          

Fees Earned                               356,000

Wages Expense         204,000        

Rent Expense              41,700          

Advertising Expense  19,800          

Gas, Electricity, and Water Expense  11,340          

                               $470,704        $480,050

 

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

               

a.  The balance of cash was overstated by $10,000.             

b.  A cash receipt of $6,100 was posted as a debit to Cash of $1,600.                     

c.  A debit of $3,500 to Accounts Receivable was not posted.                   

d.  A return of $415 of defective supplies was erroneously posted as a $451 credit to Supplies.               

e. An insurance policy acquired at a cost of $800 was posted as a credit to Prepaid Insurance.                 

f.  The balance of Notes Payable was overstated by $9,000.           

g.  A credit of $1,450 in Accounts Payable was overlooked when the balance of the account was determined.

h.  A debit of $2,500 for a withdrawal by the owner was posted as a debit to Chea Wynn, Capital.

i.  The balance of $18,900 in Advertising Expense was entered as $19,800 in the trial balance.

j.  Miscellaneous Expense, with a balance of $3,060, was omitted from the trial balance.

 

Instructions:              

1.  Prepare a corrected unadjusted trial balance as of January 31 of the current year.      

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