The Colby Group has the following unadjusted trial balance as of August 31, 2019:The Colby GroupUnadjusted Trial BalanceAugust 31, 2019DebitCreditBalancesBalancesCash....17,300Accounts Receivable...37,000Supplies....Prepaid InsuranceEquipment.....Notes Payable....7,4001,900196,00097,600Accounts Payable ..Terry Colby, Capital...Terry Colby, Drawing26,000129,15056,000Fees Earned.....454,450Wages ExpenseRent ExpenseAdvertising Expense...Miscellaneous Expense270,00051,80025,2005,100707,200667,700 The debit and credit totals are not equal as a result of thee following errors:a. The cash entered on the trial balance was understated by $6,000b. 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 postedd. A return of $150 of defective supplies was erroneously posted as a $1,500 credit to Suppliese. An insurance policy acquired at a cost of $1,200 was posted as a credit to PrepaidInsurancef. The balance of Notes Payable was understated by $20,000.g. A credit of $4,800 in Accounts Payable was overlooked when determining the balanceof the accounth.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 balancej. Gas, Electricity, and Water Expense, with a balance of $24,150, was omitted from thetrial balanceInstructions1. Prepare a corrected unadjusted trial balance as of August 31, 2019.2there are no errors in the accounts? ExplainDoes the fact that the unadjusted trial balance in (1) is balanced mean that

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Asked Nov 30, 2019
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The Colby Group has the following unadjusted trial balance as of August 31, 2019:
The Colby Group
Unadjusted Trial Balance
August 31, 2019
Debit
Credit
Balances
Balances
Cash....
17,300
Accounts Receivable...
37,000
Supplies....
Prepaid Insurance
Equipment.....
Notes Payable....
7,400
1,900
196,000
97,600
Accounts Payable ..
Terry Colby, Capital...
Terry Colby, Drawing
26,000
129,150
56,000
Fees Earned.....
454,450
Wages Expense
Rent Expense
Advertising Expense...
Miscellaneous Expense
270,000
51,800
25,200
5,100
707,200
667,700
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The Colby Group has the following unadjusted trial balance as of August 31, 2019: The Colby Group Unadjusted Trial Balance August 31, 2019 Debit Credit Balances Balances Cash.... 17,300 Accounts Receivable... 37,000 Supplies.... Prepaid Insurance Equipment..... Notes Payable.... 7,400 1,900 196,000 97,600 Accounts Payable .. Terry Colby, Capital... Terry Colby, Drawing 26,000 129,150 56,000 Fees Earned..... 454,450 Wages Expense Rent Expense Advertising Expense... Miscellaneous Expense 270,000 51,800 25,200 5,100 707,200 667,700

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The debit and credit totals are not equal as a result of thee 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
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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The debit and credit totals are not equal as a result of thee 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 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

a.Prepare corrected adjusted trial balance:

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Company CG Unadjusted Trial Balance August 31, 2019 Debit Balances Credit Balances Accounts 22,400 Cash (1) 48,000 Accounts Receivable Supplies 8,750 Prepaid Insurance 4,300 Equipment Notes payable Accounts payable 96,000 117,600 30,800 122,150 Person TC, Capital 63,000 Person TC, Drawing 454,450 Fees earned 270,000 Wages expense 58,100 |25,200 Rent expense Advertising expense Gas, Electricity, and Water expense 24,150 5,100 Miscellaneous expenses 725,000 725,000

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Step 2

Working notes:

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Working notes: a. Cash (unadjusted) +Understated cash -Incorrect posting of cash receipt debited to cash account (b.) {($17300+$6,000) (86, 500- $5,600)} Cash $22,400

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Step 3
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C. An amount of $11,000 was not debited to accounts receivable (asset) account. Hence, by debiting the amount, the accounts receivable in the corrected unadjusted trial balance would be $48,000 $37,000 (unadjusted) + $11,000). d. As a return of defective supplies of $150 was wrongly credited to the supplies (asset) account as $1,500, it is to be corrected by debiting the Supplies account with an amount of $1,350 ($1,500 $150). Hence, the amount of Supplies in the corrected unadjusted trial balance would be ss,750 $7, 400 (unadljusted) + $1,350]. e. As the purchase of insurance policy at a cost of $1,200 was wrongly credited to prepaid insurance (asset) account, it is to be corrected by crediting the prepaid insurance account with an amount of $2,400 (S1,200+$1,200). Hence, the amount of prepaid insurance in the corrected unadjusted trial balance would be $4,300 $1,900 (unadjusted) + $2, 400).

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