The trial balance of Blues Traveler Corporation does not balance. Debit Credit
Cash $5,992
Accounts Receivable 5,280
Supplies 3,007
Equipment 6,140
Accounts Payable $7,084
Common Stock 8,040
Retained Earnings 2,040
Service Revenue 5,240
Office Expense 4,360
$24,779 $22,404

An examination of the ledger shows these errors.
1. Cash received from a customer on account was recorded (both debit and credit) as $1,620 instead of $1,890.
2. The purchase on account of a computer costing $3,360 was recorded as a debit to Office Expense and a credit to Accounts Payable.
3. Services were performed on account for a client, $2,290, for which Accounts Receivable was debited $2,290 and Service Revenue was credited $265.
4. A payment of $135 for telephone charges was entered as a debit to Office Expense and a debit to Cash.
5. The Service Revenue account was totaled at $5,240 instead of $5,320.

Required:
From this information prepare a corrected trial balance.

P8-4b dropping unfavorable division based on the following analysis of last year's operations of groves, inc., a financial vice president of the company believes that the firm's total net income could be increased by $160,000 if its design division were discontinued. (amounts are given in the thousands of dollars.) required provide answers for each of the following independent situations: a. assuming that total fixed costs and expenses would not be affected by discontinuing the design division, prepare an analysis showing why you agree or disagree with the vice president. b. assume that the discontinuance of the design division will enable the company to avoid 30% of the fixed portion of cost of services and 40% of the fixed operating expenses allocated to the design division. calculate the resulting effect on net income. c. assume that in addition to the cost avoidance in requirement (b), the capacity released by discontinuance of the design division can be used to provide 6,000 new services that would have a variable cost per service of $60 and would require additional fixed costs totaling $68,000. at what unit price must the new service be sold if groves is to increase its total net income by $180,000?