Fred's trial balance did not balance so he opened a suspense account with a debit balance of $346. Control accounts are maintained for receivables and payables. Fred discovered the following: 1 The sales day book was undercast by $400. 2 Purchases of $520 from the purchases day book have only been recorded in the payables ledger control account. Profit on sale of non-current assets of $670 had been recorded in the sundry income account as $760. What is the remaining balance on Fred's suspense account after these errors have been corrected?|

Fred's trial balance did not balance so he opened a suspense account with a debit balance of $346. Control accounts are maintained for receivables and payables. Fred discovered the following: 1 The sales day book was undercast by $400. 2 Purchases of $520 from the purchases day book have only been recorded in the payables ledger control account. Profit on sale of non-current assets of $670 had been recorded in the sundry income account as $760. What is the remaining balance on Fred's suspense account after these errors have been corrected?|

Financial Accounting

15th Edition

ISBN:9781337272124

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

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

Chapter5: Accounting Systems

Section: Chapter Questions

Problem 19E: After Bunker Hill Assay Services Inc. had completed all postings for March in the current year...

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On June 30, Isner Inc.s bookkeeper is preparing to close the books for the month. The accounts receivable control total shows a balance of $550, but the accounts receivable subsidiary ledger shows total account balances of $850. The accounts receivable subsidiary ledger is shown here. Can you help find the mistake?
After Bunker Hill Assay Services Inc. had completed all postings for March in the current year (20Y4), the sum of the balances in the following accounts payable ledger did not agree with the 36,600 balance of the controlling account in the general ledger: Assuming that the controlling account balance of 36,600 has been verified as correct, (a) determine the error(s) in the preceding accounts and (b) prepare a listing of accounts payable creditor balances (from the corrected accounts payable subsidiary ledger).
The bookkeeper for Nevado Company has prepared the following trial balance: The bookkeeper has asked for your help. In examining the companys journal and ledger, you discover the following errors. Use this information to construct a corrected trial balance. a. The debits to the Cash account total 8,000, and the credits total 3,300. b. A 500 payment to a creditor was entered in the journal correctly but was not posted to the Accounts Payable account. c. The first two numbers in the balance of the Accounts Receivable account were transposed when the balance was copied from the ledger to the trial balance. d. The 1,500 amount withdrawn by the owner for personal use was debited to Miscellaneous Expense by mistakeit was correctly credited to Cash.
Based on the data presented in Exercise 5-1, assume that the beginning balances for the customer accounts were zero, except for Tillman Inc., which had a 590 beginning balance. In addition, there were no collections during the period. a. Set up a T account for Accounts Receivable and T accounts for the four accounts needed in the customer ledger. b. Post to the T accounts. c. Determine the balance in the accounts. d. Prepare a listing of the accounts receivable customer balances as of May 31, 20Y3.
Based on the data presented in Exercise 5-1, assume that the beginning balances for the customer accounts were zero, except for Sunrise Enterprises, which had a 480 beginning balance. In addition, there were no collections during the period. a. Set up a T account for Accounts Receivable and T accounts for the four accounts b. needed in the customer ledger. c. Post to the T accounts. d. Determine the balance in the accounts. e. Prepare a listing of the accounts receivable customer balances as of March 31, 2016.
The trial balance of The White Ribbon failed to agree, and the difference was posted to a suspense account. The Income Statement then showed a net loss $15,800. A subsequent audit revealed the following accounting errorsa) The loan interest of $25,000 was paid by cheque and correctly posted in the cashbook, but was debited to the loan accountb) An invoice for credit sales of $70,000 was posted in the sales ledger but was not posted in the sales accountc) Office expense of $30,000 paid by cheque and correctly posted in the cashbook, was debited to the Insurance accountd) The Closing Stock valued at $60,500 was taken as $44,500e) Cash donations of $22,500 was posted to the books as $55,200f) The Opening Stock valued at $35,000 was taken as $55,000g) Building repairs paid for $40,000 by cheque was correctly recorded in the cashbook but was debited to the building accountRequired1. Write up the General Journal to note the corrections required for the above…
The trial balance of The White Ribbon failed to agree, and the difference was posted to a suspense account. The Income Statement then showed a net loss $15,800. A subsequent audit revealed the following accounting errors a) The loan interest of $25,000 was paid by cheque and correctly posted in the cashbook, but was debited to the loan account b) An invoice for credit sales of $70,000 was posted in the sales ledger but was not posted in the sales account c) Office expense of $30,000 paid by cheque and correctly posted in the cashbook, was debited to the Insurance account d) The Closing Stock valued at $60,500 was taken as $44,500 e) Cash donations of $22,500 was posted to the books as $55,200 f) The Opening Stock valued at $35,000 was taken as $55,000 g) Building repairs paid for $40,000 by cheque was correctly recorded in the cashbook but was debited to the building account Required REQUIRED 2. Prepare the Statement of Adjusted Net Income and identify and briefly explain the errors…
The SWIPE Company's Account Receivable Control Accounts had balance of P2,865,000, which the accountant had a difficulty in identifying the classification of accounts either current or non-current. The details of the accounts receivable is presented below as of December 31, 2019: Accounts known to be worthless 37,500.00 Advance payments to creditors or purchase order 150,000.00 Advances to affiliated companies 375,000.00 Customer's accounts reporting credit balances arising from sales return (225,000.00) Interest Receivable on Bonds 150,000.00 Other Trade receivable - unassigned 750,000.00 Subscription receivable due in 30 days 825,000.00 Trade Account Receivable assigned (BC Company's equity in assigned accounts is P150,000) 375,000.00 Trade Installment Receivable due 1-18 months, including…
The total of a list of balances in Patricia Co’s receivables ledger was $643,700 on 30 September 20X9. This did not agree with the balance on Patricia Co’s receivables ledger control account. The following errors were discovered: (i) A credit balance on an individual customer’s account of $400 was incorrectly extracted as a debit balance (ii) An invoice for $3,553 was posted to the customer account as £3,535 (iii) The total of the sales returns day book was overcast by $600 What amount should be shown in Patricia Co’s statement of financial position for accounts receivable at 30 September 20X9? A. $642,918 B. $642,882 C. $644,482 D. $643,418
The DARARI Corporation's Account Receivable Control Accounts had balance of P2,865,000, which the accountant had a difficulty in identifying the classification of accounts either current or non-current. The details of the accounts receivable is presented below as of December 31, 2019: Accounts known to be worthless 37,500.00 Advance payments to creditors or purchase order 150,000.00 Advances to affiliated companies 375,000.00 Customer's accounts reporting credit balances arising from sales return (225,000.00) Interest Receivable on Bonds 150,000.00 Other Trade receivable - unassigned 750,000.00 Subscription receivable due in 30 days 825,000.00 Trade Account Receivable assigned (BC Company's equity in assigned accounts is P150,000) 375,000.00 Trade Installment Receivable due 1-18 months,…
The following misstatements are included in theaccounting records of the Joyce Manufacturing Company:1. A sales invoice was miscalculated by $1,000 as a result of a key-entry mistake.2. Cash paid on accounts receivable that had been prelisted by a secretary was stolenby the bookkeeper who records cash receipts and accounts receivable. He failed torecord the transactions.3. A material sale was recorded on the last day of the year even though the goods werenot shipped until 3 days later.4. Merchandise was shipped to a customer, but no bill of lading was prepared. Becausebillings are prepared from bills of lading, the customer was not billed.5. The controller approved a payment to a consulting firm owned by his sister. Theconsulting firm did not actually perform any services for the company.6. The shipping clerk included several additional valuable items to a shipment that werenot included in the customer’s order and were not invoiced to the customer. Theshipping clerk has an arrangement…
On December 31, 20X1, the company reported a debit balance of $100,000 in accounts receivable and a credit balance of $1,500 in the allowance for doubtful accounts. December 31 is the company’s reporting date. During 20X2, the company had the following transactions: The company made a credit sale of $400,000. The company wrote off the uncollectible accounts for $14,000. The company collected the receivable of $6,000 that had been written off previously. Prepare journal entries to record the above three transactions. Assume that 1% of the company’s accounts receivable cannot be collected, prepare journal entry to record bad debt expense at the end of 20X2.