We are using the same company as in the first module. However, you need to consider some additional information.
One client had indicated that they were interested in purchasing $42,500 worth of products, so the bookkeeper recorded the transaction. However, the client has not actually committed to the purchase.
The bookkeeper already corrected the sales account. However, the bookkeeper may have made a mistake when computing cost of goods sold. She included total production costs for 2014 and did not adjust ending inventory for the $42,500 worth of units left at the end of the year. The amount of ending inventory was determined using a physical count.
Nybrostrand Company
31-Dec-14
Trial Balance (accounts in alphabetical order)
Debit Credit
Accounts payable ______ $ 78,000
Accounts receivable $ 36,500 ______
Cash 30,000 ______
Common stock ______ 10,000
Depreciation expense 24,350 ______
Cost of goods sold 307,000 ______
Equipment(net of depreciation)415,000 ______
Insurance 1,400 ______
Inventory 34,000 ______
Long-term debt ______ 127,000
Marketing 4,500 ______
Paid-in capital ______ 50,000
Property taxes 16,900 ______
Rent 28,000 ______
Retained earnings ______ ?
Revenues ______ 586,000
Salaries 78,500 ______
Utilities 6,700 ______
Total 982,850 982,850
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