The following errors were detected: The cash balance is overstated by $5,000. Rent expense of $340 was erroneously posted as a credit rather than a debit. A $6,800 credit to Service revenue was not posted. A $400 debit to Accounts receivable was posted as $40. The balance of Utilities expense is understated by $70. A $900 purchase of supplies on account was neither journalized nor posted. Equipment should be $16,490. Requirement Prepare the corrected trial balance on February 29, 2020. JOURNAL ENTRIES ARE NOT REQUIRED. Prepare the company's financial statements for the month of February 2020. (Income statement, Statement of Owner’s Equity and the Balance Sheet)
The following errors were detected: The cash balance is overstated by $5,000. Rent expense of $340 was erroneously posted as a credit rather than a debit. A $6,800 credit to Service revenue was not posted. A $400 debit to Accounts receivable was posted as $40. The balance of Utilities expense is understated by $70. A $900 purchase of supplies on account was neither journalized nor posted. Equipment should be $16,490. Requirement Prepare the corrected trial balance on February 29, 2020. JOURNAL ENTRIES ARE NOT REQUIRED. Prepare the company's financial statements for the month of February 2020. (Income statement, Statement of Owner’s Equity and the Balance Sheet)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The following errors were detected:
- The cash balance is overstated by $5,000.
- Rent expense of $340 was erroneously posted as a credit rather than a debit.
- A $6,800 credit to Service revenue was not posted.
- A $400 debit to
Accounts receivable was posted as $40. - The balance of Utilities expense is understated by $70.
- A $900 purchase of supplies on account was neither journalized nor posted.
- Equipment should be $16,490.
Requirement
- Prepare the corrected
trial balance on February 29, 2020.JOURNAL ENTRIES ARE NOT REQUIRED. - Prepare the company's financial statements for the month of February 2020. (Income statement, Statement of Owner’s Equity and the Balance Sheet)
Transcribed Image Text:Finders Company
Trial Balance
February 29, 2020
Account
Debit
Credit
Cash
6,300
Accounts receivable
6,000
Supplies
400
Equipment
22,300
Computers
49,000
Accounts payable
2,800
Notes payable
18,500
Wright, Capital
50,000
Wright, Drawing
4,000
Service revenue
4,100
Salary Expense
1,400
Rent expense
800
Advertising expense
900
Utilities expense
800
Total
91,900
75,400
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education