PR 2-6A Corrected trial balance

Imperial Carpet has the following unadjusted trial balance as of March 31, 2012.

Imperial Carpet	Â	Â
Unadjusted Trial Balance	Â	Â
March 31, 2012	Â	Â
Â	Debit	Credit
Â	Balances	Balances
Cash	38,200	Â
Accounts Receivable	81,000	Â
Supplies	16,690	Â
Prepaid Insurance	3,600
Equipment	392,000
Notes Payable	200,000
Accounts Payable	Â	54,000
Leonardo Pepin, Capital	Â	254,300
Leonardo Pepin, Drawing	116,000
Fees Earned	Â	858,900
Wages Expense	490,000
Rent Expense	112,600	Â
Advertising Expense	50,400	Â
Miscellaneous Expense	10,200	Â
Â	1,310,690	508,300

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

a. The balance of cash was understated by $12,000.

b. A cash receipt of $13,900 was posted as a debit to Cash of $19,300.

c. A debit of $15,000 to Accounts Receivable was not posted.

d. A return of $90 of defective supplies was erroneously posted as a $900 credit to Supplies.

e. An insurance policy acquired at a cost of $2,500 was posted as a credit to Prepaid Insurance.

f. The balance of Notes Payable was understated by $35,200.

g. A credit of $7,600 in Accounts Payable was overlooked when determining the balance of the account.

h. A debit of $10,000 for a withdrawal by the owner was posted as a credit to Leonardo Pepin, Capital.

i. The balance of $116,200 in Rent Expense was entered as $112,600 in the trial balance.

j. Gas, Electricity, and Water Expense, with a balance of $48,300 was omitted from the trial balance.

Instructions

1. Prepare a corrected unadjusted trial balance as of March 31, 2012.

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