1. Record the entries needed in the journal to correct the following errors. Narratives are not required: (a) Motor Vehicles account. Motor expenses of GH¢560 entered incorrectly in the (b) entered as GH¢890. (c) Insurance of GH¢980 paid by cash should have been Sale of goods for GH¢375 to S Lin entered into the account of S Lim. (d) to Sundry expenses account (e) Returns inwards by mistake. (f) had been completely omitted. Private withdrawal of GH¢150 cash had been debited Returns outwards of GH¢75 had been credited to Purchase of stock on credit from D Wing for GH¢115

1. Record the entries needed in the journal to correct the following errors. Narratives are not required: (a) Motor Vehicles account. Motor expenses of GH¢560 entered incorrectly in the (b) entered as GH¢890. (c) Insurance of GH¢980 paid by cash should have been Sale of goods for GH¢375 to S Lin entered into the account of S Lim. (d) to Sundry expenses account (e) Returns inwards by mistake. (f) had been completely omitted. Private withdrawal of GH¢150 cash had been debited Returns outwards of GH¢75 had been credited to Purchase of stock on credit from D Wing for GH¢115

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 8TP: Analyze Trusty Companys trial balance and the additional information provided to determine the...

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1-Which of the following is an Example of Partial Omission? a. Rent expense of RO 150 were entered in Rent account only b. Rent expense of RO 150 was entered as RO 510 in both the accounts c. Rent expense of RO 150 were not entered at tall d. Rent expense of RO 150 was entered as RO 1500 in both the accounts Clear my choice 2-Which of the following is an example of Error of Complete Omission? a. Salary of RO 200 was entered as RO 2000 in both the accounts b. Salary paid RO 200 was entered only in Salary account c. Salary of RO 200 was entered as RO 20000 in cash account d. Salary paid RO 200 was not entered in both the accounts Clear my choice 3-Which of the following is an example of Books of Prime entry? a. trial balance b. Cash disbursement journal c. purchase ledger d. sales ledger 4-Financial Statements prepared by the business by using Computerized accounting system is an example of a. Both input and output…
1-Which of the following is an example of Transposition Error? a. Electricity expense of OMR 50 entered two times by mistake b. Purchase of Merchandise on credit RO 15000 entered in Fixed asset account. c. Sales day book undercast by RO 1200 d. Sale of Merchandise for cash RO 15,729 entered as 15279 in Sales account 2-Ms. Salma is an Accountant. the business incurred electricity expense of RO 512 was entered by her as RO 152 in cash account. but the entry was written in electricity account correctly. Which of the following rectification entry is Correct? a. Give Credit Cash account with RO 360 b. Give Debit Cash account with RO 360 c. Give Debit Cash Account with RO 720 d. give Debit RO 360 in both the accounts 3-Credit sales invoice will be recorded in a. Sales journal b. Purchase journal c. Purchase ledger d. Sales ledger 4-Sales revenues are RO 400,000, cost of goods sold is RO 310,000, and operating expenses are…
Which of the following error will not affect trial balance? a. Rent expense of 200 were entered in rent account 200 and cash account 2000 b. Purchase of building for cash of OMR 150000 entered in building account 15000 but cash account was entered correctly c. Electricity expense of OMR 200 undercast and Rent expense overcast by RO 200 d. Salary expense of OMR 15700 was entered as 75100 in Cash account and salary account was entered correctly
The following trial balance for Kids Play does not balance and the owner isconcerned and has passed it to you for review and adjustments whereapplicable: You have now been presented with the following list of errors and have been asked to prepare the adjusted trial balance: (journal entries are not required)a. Cash was understated by $2,000b. A $1,000 debit to accounts receivable was posted as a credit.c. A $1,400 purchase of supplies on account was omitted from thecompany’s books.d. Motor Vehicle cost should have been $84,300 instead of $89,000e. Salary expense was overstated by $500
Which of the following errors will not affect the Trial balance? a. Wrong totaling of purchase journal OMR 48,000 instead OMR 84,000 b. Cash paid to Mr. Said OMR 7800: Debit Mr. Said OMR 8700 and Credit Cash OMR 7800 c. Omitting Salary account OMR 12,000 and recording Cash account OMR 12,000 d. Omitting Rent account OMR 8,000 and Cash account RO 8,000
Business paid RO 280 rent expense was wrongly entered RO 200 in both the accounts. This type of error is a. Error of transposition b. Error of Commission c. Error of Principle d. Error of Omission
Analyze Trusty Companys trial balance and the additional information provided to determine the following: A. what is causing the trial balance to be out of balance B. any other errors that require corrections that are identified during your analysis C. the effect (if any) that correcting the errors will have on the accounting equation A review of transactions revealed the following facts: A service fee of $18,000 was earned (but not yet collected) by the end of the period but was accidentally not recorded as revenue at that time. A transposition error occurred when transferring the account balances from the ledger to the trial balance. Salaries expense should have been listed on the trial balance as $64,500 but was inadvertently recorded as $46,500. Two machines that cost $9,000 each were purchased on account but were not recorded in company accounting records.
CORRECTING ERRORS Assuming that all entries have been posted, prepare correcting entries for each of the following errors. The following entry was made to record the purchase of 400 in equipment on account: The following entry was made to record the payment of 200 for advertising: The following entry was made to record a 600 payment to a supplier on account:
Ms. Ameena is an Account Assistant of a Merchandise business in Oman. The business paid rent expense of OMR 1500. She was asked to record the transaction. But due to her busy schedule she forgot to write the entire transaction. The type of Error was committed by Ms. Ameena: a. Error of Transposition b. Error of Principle c. Error of Complete Omission d. Error of Partial Omission
Business paid RO 2000 rent expense was wrongly entered RO 20 in both the accounts. This type of error is a. Error of Principle b. Partial Omission c. Error of Omission d. Error of Commission
The following errors were detected: The cash balance is overstated by $5,000. Rent expense of $340 was erroneously posted as a credit rather than a debit. A $6,800 credit to Service revenue was not posted. A $400 debit to Accounts receivable was posted as $40. The balance of Utilities expense is understated by $70. A $900 purchase of supplies on account was neither journalized nor posted. Equipment should be $16,490. Requirement Prepare the corrected trial balance on February 29, 2020. JOURNAL ENTRIES ARE NOT REQUIRED. Prepare the company's financial statements for the month of February 2020. (Income statement, Statement of Owner’s Equity and the Balance Sheet)
The following errors were detected: The cash balance is overstated by $5,000. Rent expense of $340 was erroneously posted as a credit rather than a debit. A $6,800 credit to Service revenue was not posted. A $400 debit to Accounts receivable was posted as $40. The balance of Utilities expense is understated by $70. A $900 purchase of supplies on account was neither journalized nor posted. Equipment should be $16,490. Requirement 1. Prepare the corrected trial balance on February 29, 2020. Journal entries are not required. 2. Prepare the company's financial statements for the month of February 2020.