The following trial balance of Sheffield Co. does not balance SHEFFIELD CO. TRIAL BALANCE JUNE 30, 2017
Debit Credit
Cash $3,227
Accounts Receivable $3,588
Supplies 1,157
Equipment 4,157
Accounts Payable 3,023
Unearned Service Revenue 1,557
Common Stock 6,357
Retained Earnings 3,357
Service Revenue 2,737
Salaries and Wages Expense 3,757
Office Expense 1,297
Totals $15,513 $18,701
Each of the listed accounts should have a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors.
1. Cash received from a customer on account was debited for $570, and Accounts Receivable was credited for the same amount. The actual collection was for $750.
2. The purchase of a computer printer on account for $857 was recorded as a debit to Supplies for $857 and a credit to Accounts Payable for $857.
3. Services were performed on account for a client for $890. Accounts Receivable was debited for $890 and Service Revenue was credited for $89.
4. A payment of $422 for telephone charges was recorded as a debit to Office Expense for $422 and a debit to Cash for $422
5. When the Unearned Service Revenue account was reviewed, it was found that service revenue amounting to $682 was performed prior to June 30 (related to Unearned Service Revenue)
6. A debit posting to Salaries and Wages Expense of $1,027 was omitted.
7. A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260
8. A dividend of $932 was debited to Salaries and Wages Expense for $932 and credited to Cash for $932.
Prepare a correct trial balance. Answer the missing blank part.
SHEFFIELD CO. TRIAL BALANCE JUNE 30, 2017
Debit Credit
Cash $2563 $
Accounts Receivable 3408
Supplies 300
Equipment
Accounts Payable 2557
Unearned Service Revenue 875
Common Stock 6357
Retained Earnings 3357
Dividends 932
Service Revenue 4220
Office Expense
Salaries and Wages Expense
Totals 17366 17366

Explanation:

1. The cash balance is as follows:

Cash:

Balance stated in                   $3227

Cash Collected from -

customer misposted                  $180

Wrong debit  for telephone -

charges                                     $422

Telephone charges                   $422  

Revised Balance                      $2563

2.

Balance on account receivable ($3408) is gotten by removing $180 (i.e $750 - $570) from $3588.

3.

Supplies = $1,157 - $857 = #300

4.

Equipment: $857 + $4157(computer printer worth) = $5014

5. Accounts Payable:

Balance stated in Trial Balance         $3023

Wrong credit to Accounts Payable      $260

Payment on account                              $206

Balance                                                 $2557

6.

Unearned Service Revenue = $1557 - $682 (Revenue portion ) = $875

7. No changes occurred in common stock and retained earnings.

8.

Service revenue = unearned revenue ($2737) + $682(revenue portion) + $801(under posting)

Service revenue = $4220

9.

Salaries and wages = $3757 + ($1027) ommission - $932(dividend)

Salaries and wages = $3852

10.

No changes occurred in Office expenses.

11.

Dividened expense = $932

Sheffield Co Trial Balance can be computed as follows:

Accounts                              Debit              Credit

Cash                                    $2563

Accounts Receivable           $3408

Supplies                                 $300

Equipment                           $5014

Accounts Payable                                      $2557

Unearned Service Revenue                         $875

Common stock                                           $6357

Retained Earnings                                      $3,357

Service Revenue                                         $4220

Salaries & Wages expense $3852

Office Expenses                   $1297

Dividend                                $932                                    

                                               $17,366          $17,366        

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

it's actually a very difficult task, due to not many people can make 2 million dollars in 2 years. besides that, to the not-so-realistic ideas, you can create a business. it could be practically anything, but make it into a business that isn't that known yet, you get me? also, lets not forget about stock market. that's where all the good stuff happens. use investments at the beginning and begin to raise up your business or whatever you're going to do. as this is a very non-realistic idea, it's still worth the shot!