EX 2-21 Entries to correct errorsThe following errors took place in journalizing and posting transactions:Obj. 4a. Insurance of $18,000 paid for the current year was recorded as a debit to Insurance Expense and a credit to PrepaidInsurance.b. Dividends of $10,000 were recorded as a debit to Wages Expense and a credit to Cash.Journalize the entries to correct the errors. Omit explanations.EX 2 22 5.

A journal entry records a business transaction in the accounting system of an organization. Journal…

Answered: EX 2-21 Entries to correct errors The…

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

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

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

Chapter2: Analyzing Transactions

Section: Chapter Questions

Problem 2.22EX

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Errors in trial balance Identify the errors in the following trial balance. All accounts have normal balances. Ensemble Co. Unadjusted Trial Balance For the Year Ending December 31,2018 Debit Balances Credit Balances Cash 42,900 Accounts Receivable 123,500 Prepaid Insurance 27,000 Equipment 300,000 Accounts Payable 52,000 Salaries Payable 4,800 Common Stock 40,000 Retained Earnings 137,200 Dividends 5,000 Service Revenue 1,216,000 Salary Expense 660,000 Advertising Expense 275,000 Miscellaneous Expense 16,600 1,801,500 1,801,500
Errors in trial balance Identify the errors in the following trial balance. All accounts have normal balances. Mascot co. Unadjusted Trail Balance For the Month Ending July 31, 2019 Account No. Debit balances Credit Balances Cash 11 36,000 Accounts Receivable 12 112,600 Prepaid insurance 13 18,000 Equipment 14 375,000 Accounts payable 21 53,300 Salaries payable 22 7,500 Samuel parson, Capital 31 297,200 Samuel parson, Drawing 32 17,000 Fees Earned 41 682,000 Salary Expense 51 392,800 Advertising Expense 52 73,000 Miscellaneous Expense 59 11,600 1,189,300 1,189,300
Errors in trial balance The following preliminary unadjusted trial balance of Ranger Co., a sports ticket agency, does not balance: Ranger co. unadjusted Trail Balance August 31, 2019 Debit balances Credit Balances Cash 77,600 Accounts Receivable 37,750 Prepaid insurance 12,000 Equipment 19,000 Accounts payable 29,100 Unearned Rent 10,800 Carmen Meeks, Capital 110,000 Carmen Meeks, Drawing 13,000 Fees Earned 385,000 Wages Expense 213,000 Advertising Expense 16,350 Miscellaneous Expense 18,400 273,700 668,300 When the ledger and other records are reviewed, you discover the following: (1) the debits and credits in the cash account total 77,600 and 62,100, respectively; (2) a billing of 9,000 to a customer on account was not posted to the accounts receivable account; (3) a payment of 4,500 made to a creditor on account was not posted to the accounts payable account; (4) the balance of the unearned rent account is 5,400; (5) the correct balance of the equipment account is 190,000; and (6) each account has a normal balance. Prepare a corrected unadjusted trial balance.

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