PLEASE SKIP IF YOU ALREADY ANSWERED. I WILL UPVOTE Problem 1By what amount would each of the following errors cause a trial balance to be out of balance?a. A purchase of supplies of P3,000 was recorded as a debit to equipment and a credit to cash forP3,000.b. A P1,200 balance in Prepaid Insurance was copied to the trial balance as a debit of P2, 100c. A P5,000 balance in Accounts Payable was copied to the trial balance as a debit of P5,000.

A trail balance is a list of all account balances both debit and creditIt is useful to check the…

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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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Exercise 2-54 Effect of Errors on a Trial Balance The bookkeeper for Riley Inc. made the following errors: A cash purchase of supplies of $348 was recorded as a debit to Supplies for $384 and a credit to Cash of $384. A cash sale 0133.128 was recorded as a debit to Cash of $3,128 and a credit to Sales of $53,182. A purchase of equipment was recorded once in the journal and posted twice to the ledger. Cash paid for salaries of $5,270 was recorded as a debit to Salaries Expense of $5,270 and a credit to Accounts Payable of $5,210. A credit sale of $1600 was recorded as a credit In Sales Revenue of $1,1500; however the debit posting to Accounts Receivable was unfilled. Required: Indicate whether or not the trial balance will balance after the error. If the trial balance will not Balance indicate the direction of the misstatement for any effected account (such as Cash will be overstated by $50).
Analyze Trusty Companys trial balance and the additional information provided to determine the following: A. what is causing the trial balance to be out of balance B. any other errors that require corrections that are identified during your analysis C. the effect (if any) that correcting the errors will have on the accounting equation A review of transactions revealed the following facts: A service fee of $18,000 was earned (but not yet collected) by the end of the period but was accidentally not recorded as revenue at that time. A transposition error occurred when transferring the account balances from the ledger to the trial balance. Salaries expense should have been listed on the trial balance as $64,500 but was inadvertently recorded as $46,500. Two machines that cost $9,000 each were purchased on account but were not recorded in company accounting records.
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.

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