5. You have extracted a trial balance on 31 December 2006 which failed to agree by GH¢350, a shortage on the debit side of the trial balance. A suspense account was opened for the difference. The following errors were later found: a. The purchases daybook had been undercast by GH¢200. b. The insurance account had been undercast by GH¢50. c. Sale of equipment of GH¢400 had been credited in error to the Sales account. d. Sales account had been overcast by GH¢175 e. Discounts received had been undercast by GH¢75

5. You have extracted a trial balance on 31 December 2006 which failed to agree by GH¢350, a shortage on the debit side of the trial balance. A suspense account was opened for the difference. The following errors were later found: a. The purchases daybook had been undercast by GH¢200. b. The insurance account had been undercast by GH¢50. c. Sale of equipment of GH¢400 had been credited in error to the Sales account. d. Sales account had been overcast by GH¢175 e. Discounts received had been undercast by GH¢75

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 5PA: The Colby Group has the following unadjusted trial balance as of August 31, 2019: The debit and...

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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.
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.
what is the solution for The credit total of a trial balance exceeds the debit total by P350. In investigating the cause of the difference, the following errors were determined:a credit to accounts receivable of P550 was not posted;a P5,000 debit to be made to the Purchases account was debited to Accounts payable instead;a P3,000 credit to be made to the Sales account was credited to the Accounts receivable account instead;the Interest payable account balance of P4,500 was included in the trial balance as P5,400.The correct balance of the trial balance is
Which of the errors listed below would cause the unadjusted trial balance to be out of balance? Failure to record an adjusting entry Overstating a liability balance by P100 and expense balance by the same amount. Posting only the debit portion of a journal entry. Interest on a 60-6% note payable for P6,000 was recorded and posted as a debit to Interest Expense of P600 and a credit to Cash of P600,
The trial balance of the Sterling investigative Services shown next age does not balance. Your review of the general ledger reveals that each account has a normal balance. You also discovered the following errors. a. The totals of the debit sides of Rent Deposit, Accounts Payable, and Representation Expense were each understood to be P1,000. b. Transposition errors were made in Accounts Receivable and Service Revenue. Based on postings made, the correct balances were P25,700 and P69,600, respectively. c. Check payment for P9.400 was properly recorded, and the cash credit properly posted, but the accountant failed to post to the debit side of the taxes payable account. d. The trial balance shows some accounts are not on their proper sides. e. A cash debit posting for P5,000 was posted on the credit side. Credit P27,500 Sterling Investigative Services Trial Balance May 31, 2017 Debit Cash P55,800 Accounts Receivable Rent Deposit 7,000 Equipment 80,000 Accounts payable Taxes Payable…
Corrected trial balanceThe Lexington Group has the following unadjusted trial balance as ofMay 31. 20Y6: The debit and credit totals are not equal as a result of the followingerrors:a. The cash entered on the trial balance was overstated by $7,000.b. A cash receipt of $8,200 was posted as a debit to Cash of $2,800.C. A debit of $ 16300 to Accounts Receivable was not posted. d. A return of $ 125 of defective supplies was erroneously posted as a $1.250 credit to Suppliese. An insurance policy acquired at a cost of $3,600 was posted as a creditto Prepaid Insurance.f. The balance of Notes Payable was understated by $9,000. g. A credit of $ 10,000 in Accounts Payable was overlooked whendetermining the balance of the accounth. A debit of $5,000 for dividends was posted as a credit to RetainedEarnings.i. The balance of $60,300 in Rent Expense was entered as $63,000 in the trial balance.j. Gas, Electricity, and Water Expense, with a balance of $16,350, wasomitted from the trial…
4-After preparing the trial balance, the accountant finds that the total of debit side is OMR 125,600 and Total of Credit Side OMR 126,500. This difference should be treated before rectification of errors was a. Debit Suspense account OMR 125,600 and Credit Trial Balance OMR 126,500 b. Debit Suspense account with OMR 900 c. Suspense account should be cancelled with OMR 1800 d. Credit Suspense account with OMR 900
The firm of Adam and Son extracted a Trial Balance from the books on 30th June 2020 and found that the credit side exceeded the debit by sh.92,000. This difference was entered into a suspense account and the final account prepared. The following mistakes were subsequently discovered: 1. machinery repairs of sh.40,000 had been entered on the debit side of the machinery account. 2. Cash discount of sh.2000 allowed by Milele Ltd., a payable had not been entered in Milele Ltd Account. 3. The purchase of a computer for sh.320,000 had been entered in the office equipment account as sh.230,000. 4. The Sales Book had been under cast by sh.10,000. 5. Loan interest charged by the bank, sh.60,000, had been entered in the Bank account but not posted to the interest on loan account. 6. Sh.25,000 received for the sale of an old office desk had been debited in the cash book and also debited to the office equipment account. Required: a) Draw the journal entries…
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 PrepaidInsurance.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 ThadEngelberg, Capital.i. The balance of $28,350 in Advertising Expense was entered as $23,850 in the trialbalance.j. Miscellaneous Expense, with a balance of $4,600, was omitted from the trial…
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 PrepaidInsurance.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 balanceof 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 thetrial…
9. Which of the following errors would not prove the quality of the trial balance debits and credits? A. A miscellaneous expense for transportation was omitted B. A debit to supplies was recorded as debit to equipment C. A debit entry of 11,000 for rent was posted as 10,100 D. A payment for utilities was recorded twice