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Resolving Errors and Correcting a Trial Balance Assume we examine the accounts of Century Inc....

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Accounting

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Resolving Errors and Correcting a Trial Balance Assume we examine the accounts of Century Inc. and identify the following errors. 1. Equipment purchased for $60,000 at year-end was debited to Expenses. 2. Sales on credit of $6,632 were debited to Accounts Receivable for $7,136 and credited to Revenu 3. A $48,000 cash collection on accounts receivable was debited to Cash and credited to Revenues. 4. The inventory amount is understated by $16,000 because the entry to record the purchase of $1 The unadjusted trial balance of Century Inc. is provided below. Prepare a correct unadjusted tria Note: Do not use negative sign in your answers. the following errors. to Expenses. ble for $7,136 and credited to Revenues for $6,632. ed to Cash and credited to Revenues. the entry to record the purchase of $16,000 of inventory was incorrectly recorded in cost of goods sold (cost of goods sold is included in Expenses). w. Prepare a correct unadjusted trial balance, correcting for all errors, including improper recording of debits and credits

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