Accounting (Text Only)
26th Edition
ISBN: 9781285743615
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 2, Problem 2.18EX
Errors in
The following preliminary unadjusted trial balance of Ranger Co., a sports ticket agency, does not balance:
| Ranger co. unadjusted Trail Balance August 31, 2019 |
||
| Debit balances | Credit Balances | |
| Cash | 77,600 | |
| Accounts Receivable | 37,750 | |
| Prepaid insurance | 12,000 | |
| Equipment | 19,000 | |
| Accounts payable | 29,100 | |
| Unearned Rent | 10,800 | |
| Carmen Meeks, Capital | 110,000 | |
| Carmen Meeks, Drawing | 13,000 | |
| Fees Earned | 385,000 | |
| Wages Expense | 213,000 | |
| Advertising Expense | 16,350 | |
| Miscellaneous Expense | 18,400 | |
| 273,700 | 668,300 | |
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.
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The following preliminary unadjusted trial balance of Ranger Co., a sports ticket agency, does not balance:
Ranger Co.
UNADJUSTED TRIAL BALANCE
August 31, 2018
ACCOUNT TITLE
DEBIT
CREDIT
1
Cash
77,000.00
2
Accounts Receivable
36,150.00
3
Prepaid insurance
10,100.00
4
Equipment
18,000.00
5
Accounts Payable
29,600.00
6
Unearned Rent
11,900.00
7
Common Stock
40,000.00
8
Retained Earnings
70,000.00
9
Dividends
12,000.00
10
Service Revenue
375,150.00
11
Wages Expense
218,300.00
12
Advertising Expense
16,100.00
13
Miscellaneous Expense
18,500.00
14
Totals
269,250.00
663,550.00
When the ledger and other records are reviewed, you discover the following: (1) the debits and credits in the cash account total $77,000 and $61,000, respectively; (2) a billing of $8,500 to a customer on account was not…
The following preliminary unadjusted trial balance of Ranger Co., a sports ticket agency, does not balance:
Ranger Co.Unadjusted Trial BalanceAugust 31, 20Y7
Debit Balances
Credit Balances
Cash
50,230
Accounts Receivable
23,610
Prepaid Insurance
8,490
Equipment
7,900
Accounts Payable
13,760
Unearned Rent
3,060
Carmen Meeks, Capital
86,400
Carmen Meeks, Drawing
10,500
Fees Earned
88,910
Wages Expense
44,600
Advertising Expense
7,630
Miscellaneous Expense
1,510
186,270
160,330
When the ledger and other records are reviewed, you discover the following: (1) the debits and credits in the cash account total $50,230 and $36,070, respectively; (2) a billing of $2,660 to a customer on account was not posted to the accounts receivable account; (3) a payment of $1,910 made to a creditor on account was not posted to the accounts payable account; (4) the balance of the unearned rent…
The unadjusted trial balance of Helena’s Hire Cars is shown below (ignore GST).
Helena’s Hire Cars
Trial Balance
As at 30 June 2019
Account
Debit
Credit
Cash at bank
18,140
Accounts receivable
21,340
Office supplies
640
Prepaid advertising
3,880
Hire cars
93,600
Accumulated Depreciation - hire cars
39,400
Accounts payable
10,800
Unearned hire fees
2,260
Helena, Capital
68,340
Helena, Drawings
20,600
Hire fees revenue
98,700
Wages expense
50,620
Fuel and oil expense
10,680
219,500
219,500
Additional information
Petrol purchased on credit for $680 and used during the last week in June has not been paid for or recorded.
A physical count showed office supplies totalling $340 were still on hand at 30 June.
Depreciation for 1 year on the hire cars is $12,400.
Prepaid advertising has a balance of $600 at the end of the month.
The…
Chapter 2 Solutions
Accounting (Text Only)
Ch. 2 - What is the difference between an account and a...Ch. 2 - Prob. 2.2DQCh. 2 - Prob. 2.3DQCh. 2 - eCatalog Services Company performed services in...Ch. 2 - If the two totals of a trial balance are equal,...Ch. 2 - Assume that a trial balance is prepared with an...Ch. 2 - Assume that when a purchase of supplies of 2,650...Ch. 2 - Assume that Muscular Consulting erroneously...Ch. 2 - Assume that Sunshine Realty Co. borrowed 300,000...Ch. 2 - Checking accounts are a common form of deposits...
Ch. 2 - Rules of debit and credit and normal balances...Ch. 2 - Rules of debit and credit and normal balances...Ch. 2 - Journal entry for asset purchase Prepare a journal...Ch. 2 - Journal entry for asset purchase Prepare a journal...Ch. 2 - Journal entry for fees earned Prepare a journal...Ch. 2 - Journal entry for fees earned Prepare a journal...Ch. 2 - Journal entry for owner's withdrawal Prepare a...Ch. 2 - Journal entry for owner's withdrawal Prepare a...Ch. 2 - Prob. 2.5APECh. 2 - Missing amount from an account On August 1, the...Ch. 2 - Trial balance errors For each of the following...Ch. 2 - Trial balance errors For each of the following...Ch. 2 - Correcting entries The following errors took place...Ch. 2 - Correcting entries The following errors took place...Ch. 2 - Prob. 2.8APECh. 2 - Prob. 2.8BPECh. 2 - Chart of accounts The following accounts appeared...Ch. 2 - Chart of accounts Innerscape Interiors is owned...Ch. 2 - Prob. 2.3EXCh. 2 - Rules of debit and credit The following table...Ch. 2 - Prob. 2.5EXCh. 2 - Normal balances of accounts Identify each of the...Ch. 2 - Transactions Jardine Consulting Co. has the...Ch. 2 - Journalizing and posting On January 7, 2016,...Ch. 2 - Transactions and T accounts The following selected...Ch. 2 - Prob. 2.10EXCh. 2 - Account balances a.During February, 186,500 was...Ch. 2 - Capital account balance As of January 1, Terrace...Ch. 2 - Identifying transactions Wyoming Tours Co. is a...Ch. 2 - Prob. 2.14EXCh. 2 - Trial balance Based upon the data presented in...Ch. 2 - Trial balance The accounts in the ledger of...Ch. 2 - Effect of errors on trial balance Indicate which...Ch. 2 - Errors in trial balance The following preliminary...Ch. 2 - Effect of errors on trial balance The following...Ch. 2 - Errors in trial balance Identify the errors in the...Ch. 2 - Entries to correct errors The following errors...Ch. 2 - Entries to correct errors The following errors...Ch. 2 - Horizontal analysis of income statement The...Ch. 2 - Horizontal analysis of income statement The...Ch. 2 - Entries into T accounts and trial balance Kimberly...Ch. 2 - Journal entries and trial balance On August 1,...Ch. 2 - Journal entries and trial balance On November 1,...Ch. 2 - Journal entries and trial balance Elite Realty...Ch. 2 - Corrected trial balance The Colby Group has the...Ch. 2 - Entries into T accounts and trial balance Ken...Ch. 2 - Journal entries and trial balance On August 1,...Ch. 2 - Journal entries and trial balance On October 1,...Ch. 2 - Journal entries and trial balance Valley Realty...Ch. 2 - Corrected trial balance Tech Support Services has...Ch. 2 - The transactions completed by PS Music during June...Ch. 2 - Ethics and professional conduct in business At the...Ch. 2 - Prob. 2.2CPCh. 2 - Prob. 2.3CPCh. 2 - Prob. 2.5CP
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- The unadjusted trial balance of PS Music as of July 31, 2018, along with the adjustment data for the two months ended July 31, 2018, are shown in Chapter 3. Based upon the adjustment data, the following adjusted trial balance was prepared: PS Music Adjusted Trial Balance July 31, 2018 Account No. Debit Balances Credit Balances Cash................................................. 11 9,945 Accounts Receivable................................... 12 4,150 Supplies.............................................. 14 275 Prepaid Insurance..................................... 15 2,475 Office Equipment..................................... 17 7,500 Accumulated DepreciationOffice Equipment.......... 18 50 Accounts Payable..................................... 21 8,350 Wages Payable........................................ 22 140 Unearned Revenue.................................... 23 3,600 Common Stock....................................... 31 9,000 Dividends............................................ 33 1,750 Fees Earned........................................... 41 21,200 Music Expense........................................ 54 3,610 Wages Expense....................................... 50 2,940 Office Rent Expense................................... 51 2,550 Advertising Expense................................... 55 1,500 Equipment Rent Expense.............................. 52 1,375 Utilities Expense...................................... 53 1,215 Supplies Expense...................................... 56 925 Insurance Expense.................................... 57 225 Depreciation Expense................................. 58 50 Miscellaneous Expense................................ 59 1,855 42,340 42,340 Instructions 1. (Optional) Using the data from Chapter 3, prepare an end-of-period spreadsheet. 2. Prepare an income statement, a retained earnings statement, and a balance sheet. 3. Journalize and post the closing entries. The retained earnings account is #33 and the income summary account is #34 in the ledger of PS Music. Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry. 4. Prepare a post-dosing trial balance.arrow_forwardThe unadjusted trial balance that you prepared for PS Music at the end of Chapter 2 should appear as follows: Unadjusted Trial Balance July 31. 2016 Debit Balances Credit Balances Cash 9,945 Accounts Receivable 2,750 Supplies 1,020 Prepaid Insurance 2,700 Office Equipment 7,500 Accounts Payable 8,350 Unearned Revenue 7,200 Common Stock 9,000 Dividends 1,750 Fees Earned 16,200 Music Expense 3,610 Wages Expense 2.800 Office Rent Expense 2.SS0 Advertising Expense 1,500 Equipment Rent Expense 1,375 Utilities Expense 1,215 Supplies Expense 180 Miscellaneous Expense 1,855 40,750 40,750 The data needed to determine adjustments are as follows: a. During July. PS Music provided guest disc jockeys for KXMD for a total of 115 hours, for information on the amount of the accrued revenue to be billed to KXMD, see the contract described in the July 3, 2016, transaction at the end of Chapter 2. b. Supplies on hand at July 31, 275. c. The balance of the prepaid insurance account relates to the July 1. 2016, transaction at the end of Chapter 2. d. Depreciation of the office equipment is 50. e. The balance of the unearned revenue account relates to the contract between PS Music and KXMD, described in the July 3, 2016, transaction at the end of Chapter 2. f. Accrued wages as of July 31, 2016, were 140. Instructions 1. Prepare adjusting journal entries. You will need the following additional accounts: 18 Accumulated DepreciationOffice Equipment 22. Wages Payable 57. Insurance Expense 58. Depreciation Expense 2. Post the adjusting entries, inserting balances in the accounts affected. 3. Prepare an adjusted trial balance.arrow_forwardThe unadjusted trial balance of Helena’s Hire Cars is shown below (ignore GST). Helena’s Hire Cars Trial Balance As at 30 June 2019 Account Debit Credit Cash at bank 18,140 Accounts receivable 21,340 Office supplies 640 Prepaid advertising 3,880 Hire cars 93,600 Accumulated Depreciation - hire cars 39,400 Accounts payable 10,800 Unearned hire fees 2,260 Helena, Capital 68,340 Helena, Drawings 20,600 Hire fees revenue 98,700 Wages expense 50,620 Fuel and oil expense 10,680 219,500 219,500 Additional information Petrol purchased on credit for $680 and used during the last week in June has not been paid for or A physical count showed office supplies totalling $340 were still on hand at 30 Depreciation for 1 year on the hire cars is $12,400. Prepaid advertising has a balance of $600 at the end of the The balance in the Unearned…arrow_forward
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