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

a. The balance of cash was understated by $3,000.

b. A cash receipt of $4,500 was posted as a debit to Cash of $5,400.

c. A debit of $1,850 to Accounts Receivable was not posted.

d. A return of $350 of defective supplies was erroneously posted as a $530 credit to Supplies.

e. An insurance policy acquired at a cost of $175 was posted as a credit to Prepaid Insurance.

f. The balance of Notes Payable was understated by $7,500.

g. A credit of $900 in Accounts Payable was overlooked when determining the balance of the account.

h. A debit of $3,500 for a withdrawal by the owner was posted as a credit to Jose Mendrano, Capital.

i. The balance of $7,200 in Advertising Expense was entered as $720 in the trial balance.

j. Gas, Electricity, and Water Expense, with a balance of $6,900, was omitted from the trial balance.

Instructions

1. Prepare a corrected unadjusted trial balance as of March 31, 2008.

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