QUESTION 6 (OCT2016)Sherry, an account clerk at Akasia Enterprise has beenasked to prepare ledger and trial balance as at 28 February2016. The trial balance did not balance and uponinvestigation, the following errors were discovered:1. A payment of RM300 for electricity bills by cash hadnot been recorded at all.2. A repair to motor vehicle costing RM700 had beenposted to motor vehicle account.3. Credit purchases of RM5,000 from Ahmad had beenrecorded as RM500 in the books of prime entry.Required:i. Identify the type of errors made by Sherry in recordingeach of the above transactions.ii. Show the journal entries to correct each of the aboveerrors. Narration is not required.

Error means recording or classifying or summarizing the accounting transactions wrongly or…

Answered: i. Identify the type of errors made by…

i. Identify the type of errors made by Sherry in recording each of the above transactions. ii. Show the journal entries to correct each of the above errors. Narration is not required.

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter4: Journalizing And Posting Transactions

Section: Chapter Questions

Problem 8SEB: FINDING AND CORRECTING ERRORS Mary Smith purchased 350 worth of office equipment on account. The...

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Errors in trial balance The following preliminary unadjusted trial balance of Ranger Co., a sports ticket agency, does not balance: 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.
FINDING AND CORRECTING ERRORS Joe Adams bought 500 worth of office supplies on account. The following entry was recorded on May 17. Find the error(s) and correct it (them) using the ruling method. On May 25, after the transactions had been posted, Adams discovered that the following entry contains an error. The cash received represents a collection on account, rather than new service fees. Correct the error in the general journal using the correcting entry method.
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FINDING AND CORRECTING ERRORS Mary Smith purchased 350 worth of office equipment on account. The following entry was recorded on April 6. Find the error(s) and correct it (them) using the ruling method. On April 25, after the transactions had been posted, Smith discovered the following entry contains an error. When her customer received services, Cash was debited, but no cash was received. Correct the error in the journal using the correcting entry method.
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Effects of transactions on Accounting equation On Time Delivery Service had the following selected transactions during November: 1. Received cash from issuance of common stock, $75,000. 2. Paid rent for November, $5000. 3. Paid advertising expense, $3,000. 4. Received cash for providing delivery services, $34,500. 5. Borrowed $10,000 from Second National Bank to finance its operations. 6. Purchased a delivery van for cash, $25,000. 7. Paid interest on note from Second National Bank, $75. 8. Paid salaries and wages for November, $10,000. 9. Paid dividends, $2,000. Indicate the effect of each transaction on the accounting equation by listing the numbers identifying the transactions, (1) through (9), in a vertical column, and inserting at the right of each number the appropriate letter from he following list: a. Increase in an asset, decrease in another asset. h. Increase in an asset, increase in a liability. c. Increase in an asset, increase in stockholders’ equity. d. Decrease in an asset, decrease in a liability. e. Decrease in an asset, decrease in stockholders equity.