Which of the errors listed below would cause the unadjusted trial balance to be out of balance? Failure to record an adjusting entry Overstating a liability balance by P100 and expense balance by the same amount. Posting only the debit portion of a journal entry. Interest on a 60-6% note payable for P6,000 was recorded and posted as a debit to Interest Expense of P600 and a credit to Cash of P600,
Q: Land costing $138,463 was sold for $175,514 cash. The gain on the sale was reported on the income st...
A: Cash flow includes only the cash amount that is received or paid in the cash transaction.
Q: Garda World Security Corporation has the following shares, taken from the equity section of its bala...
A: Dividend - Dividend is the amount paid by the company to its preference and common shareholder's. Pr...
Q: 10.Which of the following is not a reason that worker involvement is important in an effective perf...
A: The correct answer for the above mentioned question is given in the following steps for your referen...
Q: A provision may be the equivalent of an estimated liability or a loss contingency that is accrued be...
A: In this question we will understand that how a provision may be equivalent of an estimated liability...
Q: PROBLEM 2: Barone's Repair Shop was started on May 1 by Nancy Barone. A summary of May transactions ...
A: Tabular analysis is other words uses any analysis that uses tables to analyze a particular data in t...
Q: On January 1, 2021, PCO purchased 70% ownership of SCO which resulted to a gain on acquisition of P1...
A: PCO purchased 70% ownership in SCO.
Q: Swifty Corporation just began business and made the following four inventory purchases in June: June...
A:
Q: Proctor & Gamble (PG) and Church & Dwight (CHD) are two iconic American consumer products companie...
A: Gross profit: Gross profit refers to the profit derived from a business. It is computed by subtracti...
Q: Work Area PROBLEM Required: Provide input into cells shaded in yellow in this template. Use mathemat...
A: Net pay: It implies to the income that is received by an employee after all the allowable deductions...
Q: How much could BTU Oil & Gas Fracking afford to spend on new equipment every start of the year for ...
A: To find out the Annual payment amount, formula is= Fi1+in - 1 Here, F= Accumulation of the sum of th...
Q: Sadie May has decided to start a business where she will sell a single line of high heel shoes. Sadi...
A: Breakeven Point: The breakeven point is the level of creation at which the costs of creation are ide...
Q: Velstrom Ltd is considering outsourcing one of its products rather than producing it in its factory....
A: Relevant cost seems to be a phrase used in management accounting to indicate avoidable expenditures ...
Q: 2. Management felt that because the data revealed some customers require a disproportionate share of...
A: Activity based costing is the allocation of overhead cost on the basis of the most appropriate cost ...
Q: Steve Osbourne is considering opening a business, but the major decision faced is how to organize th...
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued i...
Q: Debit Credit Clark Logan made cash investment in his business. Cash Logan, Capital Office Equipment ...
A: Lets understand the basics. Journal entry is required to make to record the financial event and tran...
Q: For the current year, Parker Games has the following inventory transactions related to its tradition...
A: Under FIFO method, the cost of goods sold = 106*21 + 51*16 ...
Q: Year 1 Sales (e 561 per unit) Cost of gooda sold (e $35 per unit) Gross margin selling and administr...
A: Under variable costing, Units product cost include variable manufacturing costs such as direct mater...
Q: Answer the follow: Explain the corporate characteristic termed “no mutual agency" Explain the corpo...
A: The question is related to Characteristics of Comapnies. A company is an artificial person created b...
Q: This is the residual interest in the economic resources of a company that remains after deducting ec...
A: The question requires the name of the residual interest in the economic resources of a company that ...
Q: The entry to record depreciation is an example of an adjusting entry: a. to apportion a recorded c...
A: Depreciation is the reduction in the value of asset due to its normal use and tear and wear. It is c...
Q: Sales 750.000 Sales Returns and Allowances 15.000 Sales Discounts 10.000 Purchases 170,000 Purchases...
A: Formula: cost of goods sold = Beginning inventory + Net purchases - Ending inventory
Q: JOJO Company is a metal- and woodcutting manufacturer, selling products to the home construction mar...
A: Cost of goods manufactured is a term used in managerial accounting that refers to a schedule that sh...
Q: Quantitative Problem: Bank 1 lends funds at a nominal rate of 7% with payments to be made semiannual...
A: The Effective Annual Interest Rate (EAR) seems to be the rate of interest that has been adjusted to ...
Q: Steve Osbourne is considering opening a business, but the major decision faced is how to organize th...
A: Journal entries are prepared for each and every transaction entered by the organization. It is the f...
Q: Explain the term outstanding stock. d) Is it true or false that corporations muse issue common stock...
A: Corporation is also written as company. It is the form of business in which it acts as a seprate leg...
Q: Hammond Manufacturing Inc. was legally incorporated on January 2, 2020. Its articles of incorporatio...
A: Preferred stock Preferred stock, are shares of a corporation's stock with dividends that are paid ou...
Q: Investments in Stocks - This portfolio is composed of GKKB Company shares (GanyanKabaKatigasBash) an...
A: " Since you have asked a question with multiple sub-parts, we will solve the first question for you....
Q: Basic community tax is an example of while income tax is a kind of O Privilege tax; capitation tax P...
A: Basic community tax is an example of Privilege tax while income tax is a kind of Capitation tax.
Q: On January 1, 2020, Sabond issued a 5-year 12%, P10,000,000. Interest is payable annually every Janu...
A: Present Value of Bond = Present Value of Coupon Payments + Present Value of Redemption Value Present...
Q: primary purpose of preparing a trial balance is to determine that: The ledger contains an equal pes...
A: In trial balance: Number of ledger accounts in debit and credit column can differ. Debit and credit...
Q: Cash $30,000 Accounts Receivable $2,000 Inventory $5,000 Fixed Assets $20,000 Total Assets Accounts ...
A: Assets are resources that are controlled which results from prior transactions that are expected to ...
Q: Cheyenne Corp. has the following inventory data: July 1 Beginning inventory 48 units at $19 $912 Pur...
A: LIFO (Last-in First Out): Under LIFO inventory method, units purchased last are sold first and the e...
Q: How to ensure that overstatement as well as misstatements of account balances due to redundancy and ...
A: Overstatement of account balances means reporting the account balances at an amount above the actual...
Q: Another illustration An entity is a defendant in a patent infringement suit. The lawyers believe tha...
A: The matching principle throughout accounting argues that costs and revenues should be recorded in th...
Q: Preble Company manufactures one product. Its variable manufacturing overhead is applied to productio...
A: Solution:- 1)Calculations if If Preble had purchased 187,000 pounds of materials at $7.20 per pound ...
Q: The company Dolce Vita SA has hired him as a financial advisor, and as a first function, he has been...
A: Factoring of Accounts Receivable Factoring of accounts receivable which helps to the business entity...
Q: Debit Credit Clark Logan made cash investment in his business. 1 Cash Logan, Capital 2. An office eq...
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...
Q: Adjustments are: Blair’s Custom Shop performed a count of supplies at the end of the accounting p...
A: Worksheet - Worksheet includes unadjusted Trial Balance, Adjustments and Adjusted Trial Balance. All...
Q: Additional data: The disposal cost of each inventory A, B, C, D, and E amounted to 10% of the inven...
A: Introduction: The term inventory refers to both the raw materials utilized in production and the fin...
Q: The company is desirous of comparing serval financial transactions and possible outcomes to assist i...
A: The journal entries are prepared to record day to day transactions of the business on regular basis.
Q: Assume the following five facts: • budgeted fixed manufacturing overhead for the coming period of $...
A: Predetermined plantwide overhead rate = budgeted variable manufacturing overhead rate + budgeted fix...
Q: Institute Technologies is choosing new cost drivers for its accounting system. One driver is labor h...
A: Answer) Calculation of Total Flexible Budget for Actual Labor hours Flexible Budget for Actual Labor...
Q: Explain the corporate characteristic termed “no mutual agency” Explain the corporate characterist...
A: Solution:- 1)Explanation of the corporate characteristic termed “no mutual agency” as follows under:...
Q: On January 1, 2020, Junibond issued 5-year 10%, P10,000,000 for P10,246,744. Interest and principal ...
A: Amount of Annual installments = Issue value of the bonds / Present value factor at yield rate Carryi...
Q: • Describe some civil and criminal consequences if CPAS/auditors fail to follow professional standar...
A: Auditor's Liability Risk: Audit risk is the possibility that financial statements are significantly ...
Q: Sheffield Inc. manufactures two products: car wheels and truck wheels. To determine the amount of ov...
A: The question is based on the concept of Cost Accounting.
Q: , Shyam Construction Co. entered into a contract with a customer for the construction of a building....
A: Under percentage completion method , revenue is recognized as the % of completion. The % of completi...
Q: Patterson, Inc. wishes to evaluate, in summary fashion, its financial performance for the most rec p...
A: The question is based on the concept of Cost Accounting. As per the Bartleby guidelines we are allow...
Q: 1. Tinder Company provided the following information for the last calendar year: Beginning Inventory...
A: Cost of goods manufactured = Beginning work in process + Direct material used + Direct labor cost + ...
Q: LGM will purchase all of the net assets of DMF by transferring its shares in YYZ. Because of the con...
A: The answer for the multiple choice question and relevant explanation are presented hereunder : LGM w...
Which of the errors listed below would cause the unadjusted
- Failure to record an
adjusting entry - Overstating a liability balance by P100 and expense balance by the same amount.
- Posting only the debit portion of a
journal entry . - Interest on a 60-6% note payable for P6,000 was recorded and posted as a debit to Interest Expense of P600 and a credit to Cash of P600,
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- The Colby Group has the following unadjusted trial balance as of August 31, 2019: The debit and credit totals are not equal as a result of the 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. Does the fact that the unadjusted trial balance in (1) is balanced mean that there are no errors in the accounts? Explain.Tech Support Services has the following unadjusted trial balance as of January 31, 2019: 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. 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 account 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. Does the fact that the unadjusted trial balance in (1) is balanced mean that there are no errors in the accounts? Explain.At the beginning of 2020, Tanham Company discovered the following errors made in the preceding 2 years: Reported net income was 27,000 in 2018 and 35,000 in 2019. The allowance for doubtful accounts had a zero balance at the beginning of 2018. No accounts were written off during 2018 or 2019. Ignore income taxes. Required: 1. What is the correct net income for 2018 and 2019? 2. Prepare the adjusting journal entry in 2020 to correct the errors.
- Using the data in Exercise 9-11, assume that the allowance for doubtful accounts for Selbys Bike Co. had a debit balance of 7,200 as of December 31, 2016. Journalize the adjusting entry for uncollectible accounts as of December 31, 2016. Journalize the adjusting entry for uncollectible accounts as of December 31, 2016. Selbys Bike Co. is a wholesaler of motorcycle supplies. An aging of the companys accounts receivable on December 31, 2016, and a historical analysis of the percentage of uncollectible accounts in each age category are as follows: Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31, 2016.After Bunker Hill Assay Services Inc. had completed all postings for March in the current year (20Y4), the sum of the balances in the following accounts payable ledger did not agree with the 36,600 balance of the controlling account in the general ledger: Assuming that the controlling account balance of 36,600 has been verified as correct, (a) determine the error(s) in the preceding accounts and (b) prepare a listing of accounts payable creditor balances (from the corrected accounts payable subsidiary ledger).Analyze Trusty Companys trial balance and the additional information provided to determine the following: A. what is causing the trial balance to be out of balance B. any other errors that require corrections that are identified during your analysis C. the effect (if any) that correcting the errors will have on the accounting equation A review of transactions revealed the following facts: A service fee of $18,000 was earned (but not yet collected) by the end of the period but was accidentally not recorded as revenue at that time. A transposition error occurred when transferring the account balances from the ledger to the trial balance. Salaries expense should have been listed on the trial balance as $64,500 but was inadvertently recorded as $46,500. Two machines that cost $9,000 each were purchased on account but were not recorded in company accounting records.
- For each of the following errors, considered individually, indicate whether the error would cause the adjusted trial balance totals to be unequal. If the error would cause the adjusted trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much.a. The adjustment of $9,800 for accrued fees earned was journalized as a debit to Accounts Receivable for $9,800 and a credit to Fees Earned for $8,900.b. The adjustment of depreciation of $3,600 was omitted from the end-of-period adjusting entries.For each of the following errors, considered individually, indicate whether the error would cause the trial balance totals to be unequal. If the error would cause the trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much.a. The payment of an insurance premium of $5,400 for a three-year policy was debited to Prepaid Insurance for $5,400 and credited to Cash for $4,500.b. A payment of $270 on account was debited to Accounts Payable for $720 and credited to Cash for $720.c. A purchase of supplies on account for $1,600 was debited to Supplies for $1,600 and debited to Accounts Payable for $1,600.. Trial balance errors For each of the following errors, considered individually, indicate whether the error would cause the trial balance totals to be unequal. If the error would cause the trial balance totals to be unequal, indicate whether the debit or credit total is higher AND by how much. The payment of an insurance premium of $5,400 for a three-year policy was debited to Prepaid Insurance for $5,400 and credited to Cash for $4,500. A payment of $270 on account was debited to Accounts Payable for $720 and credited to Cash for $720. A purchase of supplies on account for $1,600 was debited to Supplies for $1,600 and debited to Accounts Payable for $1,600.
- For each of the following errors, considered individually, indicate whether the error would cause the adjusted trial balance totals to be unequal. If the error would cause the adjusted trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much.a. The adjustment for accrued wages of $5,200 was journalized as a debit to Wages Expense for $5,200 and a credit to Accounts Payable for $5,200.b. The entry for $1,125 of supplies used during the period was journalized as a debit to Supplies Expense of $1,125 and a credit to Supplies of $1,152.Effect of Errors on Adjusted Trial Balance For each of the following errors, considered individually, indicate whether the error would cause the adjusted trial balance totals to be unequal. If the error would cause the adjusted trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much. a. The adjustment of $9,800 for accrued fees earned was journalized as a debit to Accounts Receivable for $9,800 and a credit to Fees Earned for $8,900. Enter the difference between the debit and credit totals. If the totals are equal, enter a zero.$fill in the blank 2 b. The adjustment of depreciation of $3,600 was omitted from the end-of-period adjusting entries. Enter the difference between the debit and credit totals. If the totals are equal, enter a zero.$fill in the blank 4Errors affecting the trial balance For each of the following errors, considered individually, indicate whether the error would cause the trial balance totals to be unequal. If the error would cause the trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much. If the debit and credit totals would be equal, enter zero ("0") in the amount box. a. The payment of an insurance premium of $2,340 for a three-year policy was debited to Prepaid Insurance for $3,240 and credited to Cash for $2,340. Which of the following is true? If the totals on the trial balance are not equal, by how much is one column higher than the other? $fill in the blank 2 b. A payment of $2,950 on account was debited to Accounts Payable for $3,245 and credited to Cash for $3,245. Which of the following is true? If the totals on the trial balance are not equal, by how much is one column higher than the other? $fill in the blank 4 c. A purchase of supplies on…