I need to prepare a corrected trial balance. The trial balance of Indah Sdn Bhd shown below does not balance.Indah Sdn BhdTrial balance as at 31 May 2021DebitCreditCash3,850Accounts Receivable2,750Prepaid InsuranceEquipmentBuildingAccounts Payable70012,00030,0004,500Uneamed Service Revenue560Share Capital41,700Service Revenue8,6904,200Salaries and Wages ExpenseAdvertising ExpenseUtilities Expense1,10080048,80062,050 Your review of the ledger reveals that each account has a normal balance. You also discoverthe following errors.a) The totals of the debit sides of Prepaid Insurance, Accounts Payable, and UtilitiesExpense were each understated RM100.b) Transposition errors were made in Accounts Receivable and Service Revenue. Based onpostings made, the corect balances were RM2,570 and RM8,960, respectively.c) A debit posting to Salaries and Wages Expense of RM200 was omitted.d) A RM1,000 cash dividend was debited to Share Capital-Ordinary for RM1,000 andcredited to Cash for RM1,000.e) A RM520 purchase of supplies on account was debited to Equipment for RM520 andcredited to Cash for RM520.) A cash payment of RM450 for advertising was debited to Advertising Expense for RM45and credited to Cash for RM45.g) A collection from a customer for RM420 was debited to Cash for RM420 and credited toAccounts Payable for RM420.

S.No Remarks 1 Due to purchased was wrongly credited and The Advertising expense of RM 45…

The trial balance of Indah Sdn Bhd shown below does not balance. Indah Sdn Bhd Trial balance as at 31 May 2021 Debit Credit Cash 3,850 Accounts Receivable Prepaid Insurance Equipment Building Accounts Payable 2,750 700 12,000 30,000 4,500 Uneamed Service Revenue 560 Share Capital Service Revemue Salaries and Wages Expense Advertising Expense Utilities Expense 41,700 8,690 4,200 1,100 800 48,800 62,050

The trial balance of Indah Sdn Bhd shown below does not balance. Indah Sdn Bhd Trial balance as at 31 May 2021 Debit Credit Cash 3,850 Accounts Receivable Prepaid Insurance Equipment Building Accounts Payable 2,750 700 12,000 30,000 4,500 Uneamed Service Revenue 560 Share Capital Service Revemue Salaries and Wages Expense Advertising Expense Utilities Expense 41,700 8,690 4,200 1,100 800 48,800 62,050

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter3: Accrual Accounting

Section: Chapter Questions

Problem 2MCQ: In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in...

See similar textbooks

Similar questions

Under Fierce Company’s accounting system, all insurance premiums paid are charged to insurance expense. Information for the year ended December 31, 2020 is as follows: Prepaid insurance, beg. P150,000 Renewal of insurance charged to expense during the year applicable for the period April 1, 2020-2021 is P500,000. What is the insurance expense using the accrual basis accounting?
Dark Inc. paid P72,000 to renew the only insurance policy for three years on March 1, 2021, the effective date of the policy. On March 31, 2021, the unadjusted trial balance showed a balance of P3,000 for prepaid insurance and P72,000 for insurance expense. What amount should be reported for prepaid insurance on March 31, 2021?a. 55,000b. 70,000c. 65,000d. 60,000
DATA PROVIDEDThe pre-adjustment trial balance of Wing-It (Pty) Ltd as at 31 August 2022 is presented:AccountDebitCreditProfessional fees765 000Goods sold435 000Cost of sales215 000Interest received19 500Interest on loan6 300Bank charges3 200Cleaning1 500Staff welfare650Salaries and wages35 850Municipal services6 850Printing and stationery16 715Telephone18 600Fuel and oil56 000Repairs and maintenance: Building5 200Repairs and maintenance: Vehicles6 850Capital: Blue520 000Capital: Green630 000Drawings: Blue35 000Drawings: Green27 000Current account: Blue2 500Current account: Green6 400Retained income265 000Land500 000Buildings1 500 000Accumulated depreciation on buildings21 000Vehicles380 000Accumulated depreciation on vehicles65 000Equipment and electronics79 500Accumulated depreciation on equipment and electronics1 5008% Long-term loan325 000Bank: FNB168 000Bank: ABSA32 000Debtors control account85 000Allowance for credit losses6 400Creditors control account78 600Petty cash2…
The December 31, 2021, unadjusted trial balance for Demon Deacons Corporation is presented below.Accounts Debit CreditCash $10,000Accounts Receivable 15,000Prepaid Rent 7,200Supplies 4,000Deferred Revenue $ 3,000Common Stock 11,000Retained Earnings 6,000Service Revenue 51,200Salaries Expense 35,000 $71,200 $71,200At year-end, the following additional information is available: 1. The balance of Prepaid Rent, $7,200, represents payment on October 31, 2021, for rent from November 1, 2021, to April 30, 2022. 2. The balance of Deferred Revenue, $3,000, represents payment in advance from a customer. By the end of the year, $750 of the services have been provided. 3. An additional $700 in…
On October 1, 2021, FDN Company paid an insurance premium covering the period from October 1, 2021 to October 1, 2022 in the amount of P190,000. The accounting period ends on December 31, 2021. How much is the Prepaid Insurance Expense reported on the Statement of Financial Position as of December 31. 2021?
1. The company uses asset method to record payment for annual insurance amounting to P12,000.00. On February 1, 2021, the bookkeeper entered it in the books as (DR) Insurance Expense, P21,000 and (CR) Cash, P21,000.00. a. Transposition b. Transplacement c. No error d. Error of Omission e. Error of account titles2. The company uses asset method to record payment for annual insurance amounting to P12,000.00. On February 1, 2021, the bookkeeper entered it in the books as (DR) Prepaid Insurance, P21,000 and (CR) Cash, P21,000.00. a. Transposition b. Transplacement c. No error d. Error of Omission e. Error of account titles3. The company uses asset method to record payment for annual insurance amounting to P12,000.00. On February 1, 2021, the bookkeeper entered it in the books as (DR) Prepaid Insurance, P120,000.00 and (CR) Cash, P120,000.00 a. Transposition b.…
3. The following is the trial balance of Aroro Enterprise as at 31 August 2019Particulars Debit (RM) Credit (RM)Capital 48,400Drawings 3,500Trade receivables 9,000Trade payables 12,500Sales 40,400Purchases 31,000Sales returns 300Purchases returns 250Wages and salaries 5,600Discounts allowed 120Discounts received 200Provision for doubtful debts 300Insurance 700Inventory as at 1 September 2018 2,400Utilities 950Rates 350Premises 10,000Fixtures and fittings 3,000Motor van 20,000Cash in hand 330Cash at bank 14,800TOTAL 102,050 102,050Additional information as at 31 August 2019:i. Inventory as at 31 August 2019 amounted RM3,300ii. An entity from whom there is accounts receivables of RM200 was unable tosettle his debt and this amount is to be written off as bad debts.iii. The provision for doubtful debts is 1% of the outstanding trade receivables.iv. The owner took RM100 worth of goods from the business for his own useRequired:a) Statement of Profit or Loss and Others Comprehensive Income…
The following accounts were included on Nigel’s adjusted trial balance at December 31, 2020:Accounts payable 11,200Accounts receivable 8,000Cash 29,000Share capital-ordinary 50,000Retained earnings 25,000Dividends 9,000Interest expense 3,500Note payable, due 30/06/23 45,000Supplies 2,800Sales revenue 39,000Building 15,000(a) What are total current assets? (b) What are total non-current liabilities?
Dark Inc. paid P72,000 to renew the only insurance policy for three years on March 1, 2021, the effective date of the policy. On March 31, 2021, the unadjusted trial balance showed a balance of P3,000 for prepaid insurance and P72,000 for insurance expense. What amount should be reported for insurance expense for the three months ended March 31, 2021?a. 3,000b. 4,000c. 5,000d. 2,000
On June 7,2019, Dilby Mechanical Corp completed $50,00 of servicing work for a client and billed them for that amount plus a GST of $2,500 and PST of $3,50; terms are N20. Required: a. Prepare the journal entry as it would appear in Dilby's accounting records. b. Assume the receivable established on June 7 was collected on June 27. Record the entry.
Bravo Company purchased a two-year insurance policy on August 1, 2021 for P28,800. Using an asset method, the adjusting entry shall include?a. A debit to prepaid insurance of P6,000 b. A debit to insurance expense of P6,00 c. A debit to insurance expense of P22,800 d. A credit to insurance expense of P22,800. e. the answer is not given
Under Edelbert company’s accounting system, all insurance premiums paid are debited to prepaid insurance. Information for the year ended December 31, 2018 is as follows:Prepaid Insurance on January 1 200,000Charge to insurance expense 880,000Prepaid insurance on December 31 240,000What was the amount of insurance premium paid in 2018?