Tech Support Services has the following unadjusted trial balance as of January 31, 2019Tech Support ServicesUnadjusted Trial BalanceJanuary 31, 2019DebitBalancesCreditBalancesCash ...25,550Accounts Receivable. .Supplies..Prepaid Insurance44,0506,6603,600Equipment...Notes Payable..Accounts PayableThad Engelberg, CapitalThad Engelberg, Drawing.162,00075,00013,200101,85033,000534,000Fees Earned...Wages ExpenseRent ExpenseAdvertising Expense..Gas, Electricity, and Water Expense306,00062,55023,85017,000684,260724,050The 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 $8,000b. 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 toSuppliese. An insurance policy acquired at a cost of $3,000 was posted as a credit to PrepaidInsurance.f. The balance of Notes Payable was overstated by $21,000g. 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 ThadEngelberg, Capitali. The balance of $28,350 in Advertising Expense was entered as $23,850 in the trialbalancej. Miscellaneous Expense, with a balance of $4,600, was omitted from the trial balanceInstructions1. Prepare a corrected unadjusted trial balance as of January 31, 2019.2there are no errors in the accounts? Explain.Does the fact that the unadjusted trial balance in (1) is balanced mean that

Question
Asked Nov 30, 2019
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Tech Support Services has the following unadjusted trial balance as of January 31, 2019
Tech Support Services
Unadjusted Trial Balance
January 31, 2019
Debit
Balances
Credit
Balances
Cash ...
25,550
Accounts Receivable. .
Supplies..
Prepaid Insurance
44,050
6,660
3,600
Equipment...
Notes Payable..
Accounts Payable
Thad Engelberg, Capital
Thad Engelberg, Drawing.
162,000
75,000
13,200
101,850
33,000
534,000
Fees Earned...
Wages Expense
Rent Expense
Advertising Expense..
Gas, Electricity, and Water Expense
306,000
62,550
23,850
17,000
684,260
724,050
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
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Tech Support Services has the following unadjusted trial balance as of January 31, 2019 Tech Support Services Unadjusted Trial Balance January 31, 2019 Debit Balances Credit Balances Cash ... 25,550 Accounts Receivable. . Supplies.. Prepaid Insurance 44,050 6,660 3,600 Equipment... Notes Payable.. Accounts Payable Thad Engelberg, Capital Thad Engelberg, Drawing. 162,000 75,000 13,200 101,850 33,000 534,000 Fees Earned... Wages Expense Rent Expense Advertising Expense.. Gas, Electricity, and Water Expense 306,000 62,550 23,850 17,000 684,260 724,050 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

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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 ac
count 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
there are no errors in the accounts? Explain.
Does the fact that the unadjusted trial balance in (1) is balanced mean that
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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 ac count 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 there are no errors in the accounts? Explain. Does the fact that the unadjusted trial balance in (1) is balanced mean that

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Expert Answer

Step 1

Corrected unadjusted trial balance: The corrected unadjusted trial balance is the summary of all the ledger accounts that appears on the ledger accounts after making adjusting journal entries. The corrected unadjusted trial balance is also known as adjusted trial balance.

Step 2

Prepare a corrected unadjusted trial balance as of August 31, 2019.

 

 

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Company TSS Unadjusted Trial Balance August 31, 2019 Debit BalancesCredit Balances Accounts Cash(1) 20,250 56,400 Accounts Receivable Supplies Prepaid Insurance Equipment Notes payable Accounts payable Person TC, Capital Person TC, Drawing 6,750 9,600 162,000 54,000 16,650 107,850 39,000 Fees eamed 534,000 Wages expense Rent expense Advertising expense Gas, Electricity, and Water expense Miscellaneous expenses 306,000 62,550 28,350 17,000 4,600 712,500 712,500

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Step 3

Working notes:

&...

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Cash (unadjusted)-Overstated cash Cash Incorect posting of cashreceipt debited to cash account (b.) ={(525,550-S8,000)+($4, 100- $1,400)} =$25,550 An amount of $12,350 was not debitedto accounts receivable (asset) account Hence, by debitingthe amount, the accounts receivable in the corectedunadjusted trial balance would be $56,400 [s44, 05 0 ( unadjuste d)+ $1 2,3 50] d. As a retum of defective supplies of$235 was wrongly credited to the supplies (asset) account as $325, it is to be corrected by debitingthe Supplies account with an amount of $90 (S325-$235). Hence,the amount ofSupplies in the corected unacjusted trial balancewould be $6,750[$6, 660 (unacjuste d)+$90] е. Asthe purchase ofinsurance policy at a cost of $3,000 was wrongly credited to prepaid insurance (asset) account, it is to be conrected by debiting the prepaid insurance accountwith anamount ofS6,000 ($3,000+$3,000). Hence, the amount ofprepaid insurance in the corrected unadjustedtrial balance would be $9,600 [s3,000 (unadjusted)+$6,000] f. As notes payable (liability) was understatedby an amount of$21,000, it is to be comrected by crediting the notes payable amount with an amout of $2 1,000 . Hence, the amount of notes payable account in the corrected unadjusted balance would be $54,000 [S75,000( uma djuste d)-$21,000]

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