Question twenty three: Write out the journal entries which would correct these errors: (a) A business receives an invoice for shs.250 from a supplier which was omitted from the books entirely. (b) Repairs worth shs.150 were incorrectly debited to the non-current asset (machinery) account instead of the repairs account. (c) The bookkeeper of a business reduces cash sales by shs.280 because he was not sure what the shs.280 represented. In fact, it was a withdrawal on account of profit. (d) Telephone expenses of shs.540 were incorrectly debited to the electricity account. (e) A page in the sales day book has been added up to shs.28,425 instead of shs.28,825.

Question twenty three: Write out the journal entries which would correct these errors: (a) A business receives an invoice for shs.250 from a supplier which was omitted from the books entirely. (b) Repairs worth shs.150 were incorrectly debited to the non-current asset (machinery) account instead of the repairs account. (c) The bookkeeper of a business reduces cash sales by shs.280 because he was not sure what the shs.280 represented. In fact, it was a withdrawal on account of profit. (d) Telephone expenses of shs.540 were incorrectly debited to the electricity account. (e) A page in the sales day book has been added up to shs.28,425 instead of shs.28,825.

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 8SEA: FINDING AND CORRECTING ERRORS Joe Adams bought 500 worth of office supplies on account. The...

See similar textbooks

Similar questions

FINDING AND CORRECTING ERRORS On May 25, after the transactions had been posted, Joe 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 a correcting entry.
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.
Which of these transactions requires a credit entry to Revenue? A. received cash from services performed this month B. collected balance due from customers C. received cash from bank loan D. refunded a customer for a defective product
Journalize correcting entries for each of the following errors and include a brief explanation. a. A cash purchase of office equipment for 680 was journalized as a cash purchase of store equipment for 680. (Use the ruling method; assume that the entry has not been posted.) b. An entry for a 180 payment for office supplies was journalized as 810. (Use the ruling method; assume that the entry has not been posted.) c. A 620 payment for repairs was journalized and posted as a debit to Equipment instead of a debit to Repair Expense. (Use the correcting entry method to journalize the correction.) d. A 750 bill for vehicle insurance was received and immediately paid. It was journalized and posted as 660. (Use the correcting entry method to journalize the correction.)
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.
For each of the transactions, state which special journal (sales journal, cash receipts journal, cash disbursements journal, purchases journal, or general journal) and which subsidiary ledger (Accounts Receivable, Accounts Payable, or neither) would be used in recording the transaction. A. Paid utility bill B. Sold inventory on account C. Received but did not pay phone bill D. Bought inventory on account E. Borrowed money from a bank F. Sold old office furniture for cash G. Recorded depreciation H. Accrued payroll at the end of the accounting period I. Sold inventory for cash J. Paid interest on bank loan
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.
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.
1-Which of the following is an example of Transposition Error? a. Electricity expense of OMR 50 entered two times by mistake b. Purchase of Merchandise on credit RO 15000 entered in Fixed asset account. c. Sales day book undercast by RO 1200 d. Sale of Merchandise for cash RO 15,729 entered as 15279 in Sales account 2-Ms. Salma is an Accountant. the business incurred electricity expense of RO 512 was entered by her as RO 152 in cash account. but the entry was written in electricity account correctly. Which of the following rectification entry is Correct? a. Give Credit Cash account with RO 360 b. Give Debit Cash account with RO 360 c. Give Debit Cash Account with RO 720 d. give Debit RO 360 in both the accounts 3-Credit sales invoice will be recorded in a. Sales journal b. Purchase journal c. Purchase ledger d. Sales ledger 4-Sales revenues are RO 400,000, cost of goods sold is RO 310,000, and operating expenses are…
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…
2. Show the journal entries needed to correct the following errors: a. Purchases $1,410,000 on credit from A Ray had been entered in B Roy’s account. b. A cheque of $94,000 paid for printing had been entered in the cash column of the cash book instead of in the bank column. c. Sale of goods $ 734, 000 on credit to D Rolls had been entered in error in D Rollo’s account. d. Purchase of goods on credit L Hand $819,000 entered in the correct accounts in error as $ 891,000. e. Cash paid to G Boyd $ 64,000 entered on the debit side of the cash book and the credit side of G Boyd’s account. f. A sale of fittings $320,000 had been entered in the Sales Account. g. Cash withdrawn from bank $200,000 had been entered in the cash column on the credit side of the cash book, and in the bank column on the debit side. h. Purchase of goods $1,182,000 has been entered in error in the Furnishings account.
4. The debit side of a company’s trial balance totals $800 more than the credit side. Which one of the following errors would fully account for the difference? A $400 paid for plant maintenance has been correctly entered in the cash book and credited to the plant asset account. B Discount received $400 has been debited to discount allowed account C A receipt of $800 for commission receivable has been omitted from the records D The petty cash balance of $800 has been omitted from the trial balance. 7. Which of the following items appear on the same side of the trial balance? (CHOOSE A,B,C or D) A Drawings and accruals B Freight out and prepayments C Freight in and rental income D Opening inventory and purchase returns Answer questions and explain why did you pick this answer