SET B.

Problem 1: The following trial balance for Tayco Talent Agency, a modelling agency, prepared as
of June 30, 2017 does not balance:

Account Titles Debit Credit

Cash P 50, 400
Accounts Receivable 38, 400
Unused Supplies 2, 000
Unexpired Insurance 5, 000
Equipment 25, 000
Notes Payable P 10, 000
Accounts Payable 8, 000
Tayco, Capital 58, 000
Tayco, Drawing 2, 000
Talent fees 123, 000
Salary Expense 50, 000
Rent Expense 7, 500
Advertising 12, 500
Utility 8, 000
Transportation 6,850
Interest Expense 650
P 208, 800 P 199, 000

In the process of verifying the accounts in the trial balance, the following errors were
discovered:

a. The cash balance was overstated by P12, 500.

b. Equipment should be listed in the amount of P30, 000
c. A credit to P5, 000 was not posted to Notes Payable
d. A P1, 500 purchased of supplies for cash was neither journalized or posted
e. A debit to Utility for P1,000 was posted as P2,500
f. Talent fees of P6,000 was omitted from the trial balance
g. Salary expense of P4,000 was posted to Rent Expense
h. A debit of P3,000 for the Drawing account of Tayco was posted to the debit side of
Tayco, Capital
i. Miscellaneous, Income was overlooked in the Ledger, P1,000
j. A debit entry for Accounts Payable was posted to the credit side P1, 300
k. Collected an account of a customer for P5, 400 but posted to the Accounts Receivable as
P4, 500

Required: Prepared a corrected trial balance