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The following information is obtained from a review of the record keeping process. Analyze the given information and prepare a modified trial balance. Show your solutions. Ricanor Accounting Services Trial Balance Dec. 31, 2021 Debit Credit Cash P189,000 284,600 Accounts Receivable Supplies Prepaid Insurance Office Equipment Notes Payable Accounts Payable Ricanor, Capital Ricanor, Withdrawals 66,400 40,000 526,800 P130,000 195,400 297,200 100,000 821,400 Service Income Salaries Expense Advertising Expense 348,700 12,200 P1,467,700 Totals P1.544.000 a. An account receivable for P 24,300 was incorrectly added as P 23,400 when computing the balance of the Accounts Receivable account. b. A debit posting from the journal for P5,200 is missing from the Salaries Expense account. C. A debit posting of P15,000 to Notes Payable should have been made to Accounts Payable. d. A debit posting of P25,000 to Supplies was incorrectly posted as P2,500. e. Credits to the ledger Accounts Payable account were under- footed by P60,000. f. Income is understated in the ledger account by P40,000. g. A credit posting of Service Income from the journal in the amount of P52,300 is missing. h. Office Equipment acquired in the amount of P17,400 have been incorrectly posted to the Supplies account.

The following information is obtained from a review of the record keeping process. Analyze the given information and prepare a modified trial balance. Show your solutions. Ricanor Accounting Services Trial Balance Dec. 31, 2021 Debit Credit Cash P189,000 284,600 Accounts Receivable Supplies Prepaid Insurance Office Equipment Notes Payable Accounts Payable Ricanor, Capital Ricanor, Withdrawals 66,400 40,000 526,800 P130,000 195,400 297,200 100,000 821,400 Service Income Salaries Expense Advertising Expense 348,700 12,200 P1,467,700 Totals P1.544.000 a. An account receivable for P 24,300 was incorrectly added as P 23,400 when computing the balance of the Accounts Receivable account. b. A debit posting from the journal for P5,200 is missing from the Salaries Expense account. C. A debit posting of P15,000 to Notes Payable should have been made to Accounts Payable. d. A debit posting of P25,000 to Supplies was incorrectly posted as P2,500. e. Credits to the ledger Accounts Payable account were under- footed by P60,000. f. Income is understated in the ledger account by P40,000. g. A credit posting of Service Income from the journal in the amount of P52,300 is missing. h. Office Equipment acquired in the amount of P17,400 have been incorrectly posted to the Supplies account.

Auditing: A Risk Based-Approach (MindTap Course List)
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter13: Auditing Debt, Equity, And Long-term Liabilities Requiring Management Estimates
Section: Chapter Questions
Problem 28RQSC
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The following information is obtained from a review of the record keeping process. Analyze the given information and prepare a modified trial balance. Show your solutions. Ricanor Accounting Services Trial Balance Dec. 31, 2021 Debit Credit Cash P189,000 284,600 66,400 40,000 526,800 Accounts Receivable Supplies Prepaid Insurance Office Equipment Notes Payable Accounts Payable Ricanor, Capital Ricanor, Withdrawals P130,000 195,400 297,200 100,000 821,400 Service Income Salaries Expense Advertising Expense Totals 348,700 12,200 P1,467,700 P1,544,000 a. An account receivable for P 24,300 was incorrectly added as P 23,400 when computing the balance of the Accounts Receivable account. b. A debit posting from the journal for P5,200 is missing from the Salaries Expense account. C. A debit posting of P15,000 to Notes Payable should have been made to Accounts Payable. d. A debit posting of P25,000 to Supplies was incorrectly posted as P2,500. e. Credits to the ledger Accounts Payable account were under- footed by P60,000. f. Income is understated in the ledger account by P40,000. g. A credit posting of Service Income from the journal in the amount of P52,300 is missing. h. Office Equipment acquired in the amount of P17,400 have been incorrectly posted to the Supplies account.
Transcribed Image Text:The following information is obtained from a review of the record keeping process. Analyze the given information and prepare a modified trial balance. Show your solutions. Ricanor Accounting Services Trial Balance Dec. 31, 2021 Debit Credit Cash P189,000 284,600 66,400 40,000 526,800 Accounts Receivable Supplies Prepaid Insurance Office Equipment Notes Payable Accounts Payable Ricanor, Capital Ricanor, Withdrawals P130,000 195,400 297,200 100,000 821,400 Service Income Salaries Expense Advertising Expense Totals 348,700 12,200 P1,467,700 P1,544,000 a. An account receivable for P 24,300 was incorrectly added as P 23,400 when computing the balance of the Accounts Receivable account. b. A debit posting from the journal for P5,200 is missing from the Salaries Expense account. C. A debit posting of P15,000 to Notes Payable should have been made to Accounts Payable. d. A debit posting of P25,000 to Supplies was incorrectly posted as P2,500. e. Credits to the ledger Accounts Payable account were under- footed by P60,000. f. Income is understated in the ledger account by P40,000. g. A credit posting of Service Income from the journal in the amount of P52,300 is missing. h. Office Equipment acquired in the amount of P17,400 have been incorrectly posted to the Supplies account.
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