3. The following errors were made: a. GH¢87 cash paid for stationery was entered in the Stationery Account and the Cash Account as GH¢97. b. GH¢430 paid for repairs for machinery was debited to Machinery Account. c. Sales Account and Purchases Account were overcast by GH¢350 each. d. Commission received GH¢1,580 was wrongly debited to the Commission Revenue Account and credited to the Cash Account. What entries should be made to correct these errors?

3. The following errors were made: a. GH¢87 cash paid for stationery was entered in the Stationery Account and the Cash Account as GH¢97. b. GH¢430 paid for repairs for machinery was debited to Machinery Account. c. Sales Account and Purchases Account were overcast by GH¢350 each. d. Commission received GH¢1,580 was wrongly debited to the Commission Revenue Account and credited to the Cash Account. What entries should be made to correct these errors?

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter3: The General Journal And The General Ledger

Section: Chapter Questions

Problem 8E: Journalize correcting entries for each of the following errors and include a brief explanation. a. A...

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Journalize correcting entries for each of the following errors and include a brief explanation. a. A cash purchase of office equipment for 680 was journalized as a cash purchase of store equipment for 680. (Use the ruling method; assume that the entry has not been posted.) b. An entry for a 180 payment for office supplies was journalized as 810. (Use the ruling method; assume that the entry has not been posted.) c. A 620 payment for repairs was journalized and posted as a debit to Equipment instead of a debit to Repair Expense. (Use the correcting entry method to journalize the correction.) d. A 750 bill for vehicle insurance was received and immediately paid. It was journalized and posted as 660. (Use the correcting entry method to journalize the correction.)
4. The debit side of a company’s trial balance totals $800 more than the credit side. Which one of the following errors would fully account for the difference? A $400 paid for plant maintenance has been correctly entered in the cash book and credited to the plant asset account. B Discount received $400 has been debited to discount allowed account C A receipt of $800 for commission receivable has been omitted from the records D The petty cash balance of $800 has been omitted from the trial balance. 7. Which of the following items appear on the same side of the trial balance? (CHOOSE A,B,C or D) A Drawings and accruals B Freight out and prepayments C Freight in and rental income D Opening inventory and purchase returns Answer questions and explain why did you pick this answer
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.Instructions1. Prepare a corrected unadjusted trial balance as of August 31, 2014.2. Does…
Choose A, B, C or D and give an explanation The debit side of a company’s trial balance totals $800 more than the credit side.Which one of the following errors would fully account for the difference?A $400 paid for plant maintenance has been correctly entered in the cash book and credited to the plant asset account.B Discount allowed $400 has been debited to discount received accountC A receipt of $800 for commission receivable has been omitted from the recordsD The petty cash balance of $800 has been recorded to the trial balance twice.
Which of the following errors would not affect net income?A. Post-dated checks are classified as cash upon receipt from customersB. Purchases on account are unrecorded because the goods are still in transit : butthe goods were included in inventoryC. Depreciation expense was recorded twice for the same yearD. The client charged an ordinary repair as part of equipment cost.
An error was made in posting of cash sales for $2 000. The both accounts were understated by the amount. What type of error is this? Error of Principle Error of Original Entry Error of Commission Reversal of Entries
A credit sales of RM5,000 to Rima was credited to the Sales Account, but wrongly debited in Rama account (a debtor). What is the type of error made? Error of original entry Error of commission Compensating error Error of omission
2. Show the journal entries needed to correct the following errors: a. Purchases $1,410,000 on credit from A Ray had been entered in B Roy’s account. b. A cheque of $94,000 paid for printing had been entered in the cash column of the cash book instead of in the bank column. c. Sale of goods $ 734, 000 on credit to D Rolls had been entered in error in D Rollo’s account. d. Purchase of goods on credit L Hand $819,000 entered in the correct accounts in error as $ 891,000. e. Cash paid to G Boyd $ 64,000 entered on the debit side of the cash book and the credit side of G Boyd’s account. f. A sale of fittings $320,000 had been entered in the Sales Account. g. Cash withdrawn from bank $200,000 had been entered in the cash column on the credit side of the cash book, and in the bank column on the debit side. h. Purchase of goods $1,182,000 has been entered in error in the Furnishings account.
ME11Which of the following errors, each considered individually, would cause the trial balance totals to be unequal?a) A payment of $488 to a creditor was posted as a debit of $848 to Accounts Payable and a debit of $488 to Accounts Receivable.b) Cash received from customers on account was posted as a debit of $450 to Cash and a credit of $450 to Accounts Payable.c) A payment of $79 for supplies was posted as a debit of $907 to Supplies and a credit of $907 to Cash.d) A transaction was not posted.
Which of the following is not an error of commission:(a) Overcasting of sales book.(b) Credit sales to Ramesh  5,000 credited to his account.(c) Wrong balancing of machinery account.(d) Cash sales not recorded in cash book.
The trial balance of Kelvin does not balance. Which TWO of the following errors could explain this, assuming that Kelvin maintains control accounts for its receivables and payables within the double entry system? (1) The sales day book was undercast by $100.(2) Discounts received were credited to sales revenue account.(3) An opening accrual was omitted from the rent account.(4) The debit side of the cash account was undercast. A (1) and (2)B (2) and (3)C (3) and (4)D (1) and (4) Please give solution with proper explanation
The credit column of a trial balance is $1,200 more than the debit column. Which of the following errors would explain the difference? A No entries had been made for the purchase of goods costing $1,200. B A payment of $1,200 for electricity had been correctly entered in the cash account, and a credit was made to the electricity account. C Cash sales of $600 had been correctly entered in the sales account, and credited in the cash account D The debit side of the cash account shows a balance which is $1,200 higher than it should be