Business
Engineering
Math
Science
Social Science
The following preliminary unadjusted trial balance of Ranger Co., a sports ticket agency, does not balance: When the ledger and other records are reviewed, you discover the following: (1) the debits and credits in the cash account total $77,600 and $62,100, respectively; (2) a billing of $9,000 to a customer on account was not posted to the accounts receivable account; (3) a payment of $4,500 made to a creditor on account was not posted to the accounts payable account; (4) the balance of the unearned rent account is $5,400; (5) the correct balance of the equipment account is $190,000; and (6) each account has a normal balance. Prepare a corrected unadjusted trial balance.
Financial Accounting
Solutions
Financial Accounting
The following preliminary unadjusted trial balance of Ranger Co., a sports ticket agency, does not balance:
When the ledger and other records are reviewed, you discover the following: (1) the debits and credits in the cash account total $77,600 and $62,100, respectively; (2) a billing of $9,000 to a customer on account was not posted to the accounts receivable account; (3) a payment of $4,500 made to a creditor on account was not posted to the accounts payable account; (4) the balance of the unearned rent account is $5,400; (5) the correct balance of the equipment account is $190,000; and (6) each account has a normal balance.
Prepare a corrected unadjusted trial balance.
Prepare a corrected unadjusted trial balance for Company R.
Explanation of Solution
Trial balance:
A trial balance is the summary of all the ledger accounts. The trial balance is prepared to check the total balance of the debit column with the total of the balance of the credit column, which must be equal. The trial balance is usually prepared to check accuracy of ledger balances, and before the preparation of financial statements.
Unadjusted trial balance:
The unadjusted trial balance is the summary of all the ledger accounts that appears on the ledger accounts before making adjusting journal entries.
The unadjusted trial balance for Company R for August 31, 2019 is as follows:
| Company R | ||
| Unadjusted trial balance | ||
| August 31, 2019 | ||
| Particulars | Debit $ | Credit $ |
| Cash | 15,500 | |
| Accounts receivable | 46,750 | |
| Prepaid insurance | 12,000 | |
| Equipment | 190,000 | |
| Accounts payable | 26,600 | |
| Unearned rent | 5,400 | |
| Capital | 110,000 | |
| Drawings | 13,000 | |
| Fees earned | 385,000 | |
| Wages expenses | 213,000 | |
| Advertising expenses | 16,350 | |
| Miscellaneous expense | 18,400 | |
| 525,000 | 525,000 | |
Table (1)
Working notes:
- 1. Working note for correct cash balance:
- 2
Chapter 2 Solutions
Additional Business Textbook Solutions
Financial And Managerial Accounting
Accounting Information Systems
Corporate Financial Accounting
Financial & Managerial Accounting
Brief Principles of Macroeconomics (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Fundamentals of Financial Management (MindTap Course List)
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Principles of Macroeconomics (MindTap Course List)
Principles of Economics (MindTap Course List)
ECON MICRO
Principles of Microeconomics (MindTap Course List)
Foundations of Business (MindTap Course List)
Essentials of Business Communication (MindTap Course List)
Management, Loose-Leaf Version
College Accounting, Chapters 1-27
Contemporary Marketing
Essentials of Economics (MindTap Course List)
Managerial Accounting: The Cornerstone of Business Decision-Making
Intermediate Accounting: Reporting And Analysis
Financial & Managerial Accounting
College Accounting (Book Only): A Career Approach
Accounting Information Systems
MKTG 12:STUDENT ED.-TEXT
College Accounting (Book Only): A Career Approach
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Accounting (Text Only)
Fundamentals of Financial Management (MindTap Course List)
Statistics for Business & Economics, Revised (MindTap Course List)
Pkg Acc Infor Systems MS VISIO CD
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Exploring Economics
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Corporate Financial Accounting
Survey of Accounting (Accounting I)
Economics (MindTap Course List)
Practical Management Science
Microeconomics
Economics For Today
Purchasing and Supply Chain Management
Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Financial Accounting
Managerial Accounting
Macroeconomics: Private and Public Choice (MindTap Course List)
Economics: Private and Public Choice (MindTap Course List)
MACROECONOMICS FOR TODAY
Principles of Microeconomics
Microeconomics: Private and Public Choice (MindTap Course List)
Understanding Management (MindTap Course List)
