Ivanhoe Company discovered the following errors made in January 2022. 1. A payment of Salaries and Wages Expense of $890 was debited to Equipment and credited to Cash, both for $890. 2. A collection of $7,400 from a client on account was debited to Cash $740 and credited to Service Revenue $740. 3. The purchase of equipment on account for $460 was debited to Equipment $640 and credited to Accounts Payable $640. Correct the errors without reversing the incorrect entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation 1. Salarles and Wages Expense Equipment 2. Cash 3. Service Revenue Accounts Receivable Debit 890 740 180 Credit 890 7400 180

Ivanhoe Company discovered the following errors made in January 2022. 1. A payment of Salaries and Wages Expense of $890 was debited to Equipment and credited to Cash, both for $890. 2. A collection of $7,400 from a client on account was debited to Cash $740 and credited to Service Revenue $740. 3. The purchase of equipment on account for $460 was debited to Equipment $640 and credited to Accounts Payable $640. Correct the errors without reversing the incorrect entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation 1. Salarles and Wages Expense Equipment 2. Cash 3. Service Revenue Accounts Receivable Debit 890 740 180 Credit 890 7400 180

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter2: Analyzing Transactions

Section: Chapter Questions

Problem 5PB: Tech Support Services has the following unadjusted trial balance as of January 31, 2019: The debit...

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The Colby Group has the following unadjusted trial balance as of August 31, 2019: The debit and credit totals are not equal as a result of the following errors: a. The cash entered on the trial balance was understated by 6,000. b. A cash receipt of 5,600 was posted as a debit to Cash of 6,500. c. A debit of 11,000 to Accounts Receivable was not posted. d. A return of 150 of defective supplies was erroneously posted as a 1,500 credit to Supplies. e. An insurance policy acquired at a cost of 1,200 was posted as a credit to Prepaid Insurance. f. The balance of Notes Payable was understated by 20,000. g. A credit of 4,800 in Accounts Payable was overlooked when determining the balance of the account. h. A debit of 7,000 for a withdrawal by the owner was posted as a credit to Terry Colby, Capital. i. The balance of 58,100 in Rent Expense was entered as 51,800 in the trial balance. j. Gas, Electricity, and Water Expense, with a balance of 24,150, was omitted from the trial balance. Instructions 1. Prepare a corrected unadjusted trial balance as of August 31, 2019. 2. Does the fact that the unadjusted trial balance in (1) is balanced mean that there are no errors in the accounts? Explain.
Tech Support Services has the following unadjusted trial balance as of January 31, 2019: The debit and credit totals are not equal as a result of the following errors: a. The cash entered on the trial balance was overstated by 8,000. b. A cash receipt of 4,100 was posted as a debit to Cash of 1,400. c. A debit of 12,350 to Accounts Receivable was not posted. d. A return of 235 of defective supplies was erroneously posted as a 325 credit to Supplies. e. An insurance policy acquired at a cost of 3,000 was posted as a credit to Prepaid Insurance. f. The balance of Notes Payable was overstated by 21,000. g. A credit of 3,450 in Accounts Payable was overlooked when the balance of the account was determined. h. A debit of 6,000 for a withdrawal by the owner was posted as a debit to Thad Engelberg, Capital. i. The balance of 28,350 in Advertising Expense was entered as 23,850 in the trial balance. j. Miscellaneous Expense, with a balance of 4,600, was omitted from the trial balance. Instructions 1. Prepare a corrected unadjusted trial balance as of January 31, 2019. 2. Does the fact that the unadjusted trial balance in (1) is balanced mean that there are no errors in the accounts? Explain.
On January 24, 20Y8, Niche Consulting collected $5,700 it had hilled its clients for services rendered on December 31, 20Y7. How would you record the January 24 transaction, using the accrual basis? A. Increase Cash, $5,700; decrease Fees Earned, $5,700 B. Increase Accounts Receivable, $5,700; increase Fees Earned, $5,700 C. Increase Cash, $5,700; decrease Accounts Receivable, $5,700 D. Increase Cash, $5,700; increase Fees Earned, $5,700
Pharoah Company discovered the following errors made in January 2020. 1. A payment of Salaries and Wages Expense of $310 was debited to Equipment and credited to Cash, both for $310. 2. A collection of $7,900 from a client on account was debited to Cash $790 and credited to Service Revenue $790. 3. The purchase of equipment on account for $480 was debited to Equipment $720 and credited to Acc
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These errors were discovered in the account of Golden Arches Company: Salaries payable amounting to P 34,000 was not recorded in 2021. Accrued vacation pay for the year 2021 for P 62,500 was not recorded due to lack of knowledge by the bookkeeper. Insurance for a 12-month period purchased on November 1, 2021 was charged to expenses in the amount of P 37,200. a. P 6,200 under b. P 65,500 over c. P 59,300 over d. P 64,500 under
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Horace Culpepper, CA, was retained by Pulsar Cable to prepare financial statements for April 2020. Horace accumulated all the ledger balances per Pulsar’s records and found the following. Analyze errors and prepare correcting entries and trial balance. Pulsar Cable Trial Balance April 30, 2020 Debit Credit Cash £ 4,100 Accounts Receivable 3,200 Supplies 800 Equipment 10,800 Accumulated Depreciation—Equip. £ 1,350 Accounts Payable 2,100 Salaries and Wages Payable 700 Unearned Service Revenue 890 Share Capital—Ordinary 10,100 Retained Earnings 2,800 Service Revenue 5,650 Salaries and Wages Expense 3,300 Advertising Expense 600 Miscellaneous Expense 290 Depreciation Expense 500 £23,590 £23,590 Horace Culpepper found the following errors. 1. Cash received from a customer on account was recorded as £950 instead of £590. 2. A payment of £75 for advertising expense was entered as a debit to Miscellaneous Expense £75 and a credit to Cash £75. 3. The first salary payment this month was…
Zuhoor Muscat Company is a manufacturer of thermal imaging cameras . On 31 March 2021, the following balances are shown in its ledger accounts after adjustments : Cash : RO 3,425 ; Wages Payable : RO 440; Office Equipment : RO 51,650 Accumulated Depreciation - Office Equipment : RO 14,650 ; Accounts Receivable : RO 8,000 ; Patents : RO 2,000; Fees Income : RO 60,625 ; Wages Expense : RO 22,855 Depreciation Expense : RO 4,950 ; Rent Expense : RO 4,200; Utilities Expense : RO 2,715 ; Supplies Expense : RO 890; Insurance Expense : RO 315; Miscellaneous Expense : RO 1,505; Unearned Fees: RO 750 ; Share Capital : RO 47,995 ; Accounts Payable : RO 925 ; Supplies : RO 380; Prepaid Insurance RO 305; Notes Payable : RO 1,000 ; Retained Earnings 1 April 2020 : RO ; Dividends : RO 5,490. The ending balance on Retained Earnings on 31 March 2021 is: a RO 18,205 b. RO 16,507 O c of the options are correct d. RO 17,705 RO e. RO 17,995
Zuhoor Muscat Company is a manufacturer of thermal imaging cameras. On 31 March 2021, the following balances are shown in its ledger accounts after adjustments: Cash: RO 3,425; Wages Payable: RO 440, Office Equipment: RO 51,650 Accumulated Depreciation - Office Equipment: RO 14,650; Accounts Receivable: RO 8,000; Patents: RO 2,000; Fees Income: RO 55,987; Wages Expense: RO 22,900: Depreciation Expense: RO 4,950; Rent Expense: RO 4,399; Utilities Expense: RO 2,815; Supplies Expense: RO 800; Insurance Expense: RO 400; Miscellaneous Expense: RO 1,632. Unearned Fees: RO 750; Share Capital: RO 47,995; Accounts Payable: RO 925; Supplies: RO 380; Prepaid Insurance RO 305: Notes Payable: RO 1,000; Retained Earnings 1 April 2020: RO 0. The total equity reported in the Statement of Financial Position on 3i March 2021 is:e
Below are three independent and unrelated errors. On December 31, 2017, Wolfe-Bache Corporation failed to accrue office supplies expense of $1,850. In January 2018, when it received the bill from its supplier, Wolfe-Bache made the following entry: Office supplies expense 1,850 Cash 1,850 On the last day of 2017, Midwest Importers received a $91,000 prepayment from a tenant for 2018 rent of a building. Midwest recorded the receipt as rent revenue. At the end of 2017, Dinkins-Lowery Corporation failed to accrue interest of $8,100 on a note receivable. At the beginning of 2018, when the company received the cash, it was recorded as interest revenue. Required:For each error:1. What would be the effect of each error on the income statement and the balance sheet in the 2017 financial statements?2. Prepare any journal entries each company should record in 2018 to correct the errors.
Zuhoor Muscat Company is a manufacturer of thermal imaging camerasOn 31 March 2021, the following balances are shown in its ledger accounts after adjustments: Cash: RO 3,425; Wages Payable: RO 440; Office Equipment: RO 51,650; Accumulated Depreciation - Office Equipment: RO 14,650; Accounts Receivable: RO 8,000; Patents: RO 2,000; Fees Income: RO 60,625 ; Wages Expense: RO 22,855; Depreciation Expense: RO 4,950; Rent Expense: RO 4,200; Utilities Expense: RO 2.715Supplies Expense: RO 890; Insurance Expense: RO 315; Miscellaneous Expense: RO 1,505; Unearned Fees : RO 750; Share Capital: RO 47,995Accounts Payable: RO 925; Supplies: RO 380; Prepaid Insurance RO 305; Notes Payable: RO 1, 000 ; Retained Earnings 1 April 2020: RO Dividends : RO 5,200. The ending balance on Retained Earnings on 31 March 2021 is :