Financial Accounting

Free Version

Upgrade subject to access all content

Difficult

Correcting Errors in the Unadjusted Trial Balance-Schell Labs

FINACT-GXE1O0

In reviewing the unadjusted trial balance, an accountant at Schell Labs determined that, among other things, the company's cash balance of \$39,700 had the following errors:

  1. The balance was understated by \$10,000.
  2. A cash receipt of \$11,900 was erroneously posted as a debit to Cash of \$19,100.
  3. Cash paid for \$1,450 worth of supplies was erroneously posted as a credit to Cash of \$450.
  4. A \$750 cash withdrawal by the owner was overlooked when determining the balance of the account.
  5. A cash refund of \$1,250 that was received due to the return of defective equipment was erroneously debited to Accounts Receivable.

What adjustment to the current cash balance should the accountant make to correct for these errors?

A

decrease by \$200

B

increase by \$2,300

C

increase by \$3,800

D

increase by \$4,300

E

increase by \$16,700

F

decrease by \$17,700