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
Accounts Receivable 34,100
Prepaid Insurance 4,800
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
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.
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.