Following are the general ledger account balances of Balcones Company, Inc. (BCI), as of September 30, 2009:
- Cash $50,000
- Accounts Receivable 300,000
- Inventory 250,000
- Equipment 450,000
- Accumulated Depreciation-Equipment 110,000
- Accounts Payable 350,000
- Income Taxes Payable 50,000
- Common Stock 95,000
- Retained Earning 100,000
- Sales Revenue 600,000
- Operating Expenses 255,000
a.) Prepare a trial balance for BCI as of September 30, 2009.
b.) Even if a trial balance is in balance, one or more general ledger accounts of a business may contain errors. Provide three examples of accounting errors that would not cause a business's trial balance to be out-of-balance.
c.) What steps could the management of BCI take to help ensure that its accounts are error free? Write a brief memo to the company's management listing your recommendations.