Accounting Foundations
Trial Balance Detective
Northstar Services · Mar 3 · Scenario 1
On March 3 Northstar paid $450 cash for supplies. The ledger records that purchase as a $450 debit to Cash and a $450 credit to Supplies. Total debits and total credits both come to 6,350.
Compare the ledger with the source document, decide what happened, then post a correcting entry.
Source document
Card receipt — supplies $450 paid in cash
Trial balance · Northstar Services
| Account | Debit | Credit |
|---|---|---|
| Cash | 6,350 | — |
| Supplies | — | 450 |
| Accounts Payable | — | 800 |
| Common Stock | — | 5,000 |
| Service Revenue | — | 100 |
| Totals before correction | 6,350 | 6,350 |
What went wrong?
T-accounts
Supplies
Normal balance: debit
Debit
—
Credit
—
No entry yet
Balance 0
Cash
Normal balance: debit
Debit
—
Credit
—
No entry yet
Balance 0
Accounts Payable
Normal balance: credit
Debit
—
Credit
—
No entry yet
Balance 0
Journal entry
Posting is blocked until total debits equal total credits.