Financial & Managerial Accounting
13th Edition
ISBN: 9781285866307
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 Trial Balance August 31,2016 |
||
| Debit Balances | Credit Balances | |
| 77,600 | ||
| 37,750 | ||
| Prepaid Insurance | 12,000 | |
| Equipment | 1,000 | |
| Accounts Payable | 29,100 | |
| Unearned Rent | 10,800 | |
| Common Stock | 40,000 | |
| 70,000 | ||
| Dividends | 13,000 | |
| Service Revenue | 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 trial balance of Watteau Co. does not balance.
Watteau Co.Trial BalanceJune 30, 2020
Debit
Credit
Cash
$ 2,870
Accounts Receivable
$ 3,231
Supplies
800
Equipment
$ 3,800
Accounts Payable
$ 2,666
Unearned Service Revenue
1,200
Common Stock
6,000
Retained Earnings
3,000
Service Revenue
2,380
Salaries and Wages Expense
3,400
Office Expense
940
00000
$13,371
$16,916
Each of the listed accounts should have a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors.
1. Cash received from a customer on account was debited for $570, and Accounts Receivable was credited for the same amount. The actual collection was for $750.
2. The purchase of a computer printer on account for $500 was recorded as a debit to Supplies for $500 and a credit to Accounts Payable for $500.
3. Services were performed on account for a client for $890. Accounts Receivable…
Corrected trial balance
Tech Support Services has the following unadjusted trial balance as of January 31.20Y5:
Debit Balances
Credit Balances
Cash
25,550
Accounts Receivable
44,050
Supplies
6,660
Prepaid Insurance
3,600
Equipment Notes Payable
162,000
75,000
Accounts Payable
13,200
Common Stock
18,000
Retained Earnings Dividends
33,000
83,850
Fees Earned Wages Expense
306,000
$34,000
Rent Expense
62,550
Advertising Expense
23,850
Gas, Electricity, and Water Expense
17,000
684,260
724,050
The debit and credit totals are not equal as a result of the following errors:
A cash receipt of $4,100 was posted as a debit to Cash of $1,400.
A debit of $12350 to Accounts Receivable was not
A return of $235of defective supplies was erroneously posted as a $325 credit to Supplies.
An insurance policy acqtured at a cost of $3,000 was posted as a…
Chapter 2 Solutions
Financial & Managerial Accounting
Ch. 2 - What is the difference between an account and a...Ch. 2 - Prob. 2DQCh. 2 - Prob. 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 - Prob. 7DQCh. 2 - Assume that Muscular Consulting erroneously...Ch. 2 - Assume that Sunshine Realty Co. borrowed 300,000...Ch. 2 - Checking accounts are one of the most common forms...
Ch. 2 - Prob. 2.1APECh. 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 dividends Prepare a journal...Ch. 2 - Journal entry for dividends Prepare a journal...Ch. 2 - Prob. 2.5APECh. 2 - Missing amount from an account On August 1, the...Ch. 2 - Prob. 2.6APECh. 2 - Trial balance errors For each of the following...Ch. 2 - Prob. 2.7APECh. 2 - Correcting entries The following errors took place...Ch. 2 - Prob. 2.8APECh. 2 - Prob. 2.8BPECh. 2 - Prob. 2.1EXCh. 2 - Chart of accounts Innerscape Interiors is owned...Ch. 2 - Chart of accounts LeadCo School is a newly...Ch. 2 - Rules of debit and credit The following table...Ch. 2 - Normal entries for accounts During the month,...Ch. 2 - Normal balances of accounts Identify each of the...Ch. 2 - Prob. 2.7EXCh. 2 - Prob. 2.8EXCh. 2 - Transactions and T accounts The following selected...Ch. 2 - Cash account balance During the month, Warwick Co....Ch. 2 - Account balances A. During February, 186,500 was...Ch. 2 - Retained earnings account balance As of January 1,...Ch. 2 - Identifying transactions Wyoming Tours Co. is a...Ch. 2 - Journal entries Based upon the T accounts in...Ch. 2 - Prob. 2.15EXCh. 2 - Prob. 2.16EXCh. 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 - Prob. 2.23EXCh. 2 - Prob. 2.24EXCh. 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 - Prob. 2.1BPRCh. 2 - Prob. 2.2BPRCh. 2 - Journal entries and trial balance On October 1,...Ch. 2 - Journal entries and trial balance Valley Realty...Ch. 2 - Prob. 2.5BPRCh. 2 - Prob. 1COPCh. 2 - Prob. 2.1CPCh. 2 - Prob. 2.2CPCh. 2 - Prob. 2.3CPCh. 2 - Prob. 2.5CP
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