Corrected trial balance The Lexington Group has the following unadjusted trial balance as of May 31. 20Y6: The Lexington Group Unadjusted Trial Balance May 31. 20Y6 Debit Balances Credit Balances Cash 20,350 Accounts Receivable 37,000 Supplies 1,100 Prepaid Insurance 200 Equipment Notes Payable 171,175 36,000 Accounts Payable 26,000 Common Stock 50,000 Retained Earnings Dividends 15,000 94,150 Fees Earned Wages Expense 270,000 429,850 Rent Expense 63,000 Advertising Expense 25,200 Miscellaneous Expense 5,100 608,125 636,000 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 $7,000. b. A cash receipt of $8,200 was posted as a debit to Cash of $2,800. c. A debit of $ 16300 to Accounts Receivable was not posted. d. A return of $ 125 of defective supplies was erroneously posted as a $ 1.250 credit to Supplies e. An insurance policy acquired at a cost of $3,600 was posted as a credit to Prepaid Insurance. f. The balance of Notes Payable was understated by $9,000. g. A credit of $ 10,000 in Accounts Payable was overlooked when determining the balance of the account h. A debit of $5,000 for dividends was posted as a credit to Retained Earnings. i. The balance of $60,300 in Rent Expense was entered as $63,000 in the trial balance. j. Gas, Electricity, and Water Expense, with a balance of $16,350, was omitted from the trial balance. Instructions 1. Prepare a corrected unadjusted trial balance as of May 31, 20Y6. 2. Does the fact that the unadjusted trial balance in (1) is balanced mean that there are no errors in the accounts? Explain.

BuyFind

Corporate Financial Accounting

15th Edition
Carl Warren + 1 other
Publisher: Cengage Learning
ISBN: 9781337398169
BuyFind

Corporate Financial Accounting

15th Edition
Carl Warren + 1 other
Publisher: Cengage Learning
ISBN: 9781337398169

Solutions

Chapter
Section
Chapter 2, Problem 2.5APR
Textbook Problem

Corrected trial balance

The Lexington Group has the following unadjusted trial balance as of May 31. 20Y6:

The Lexington Group Unadjusted Trial Balance May 31. 20Y6

Debit Balances Credit Balances
Cash 20,350
Accounts Receivable 37,000
Supplies 1,100
Prepaid Insurance 200
Equipment Notes Payable 171,175 36,000
Accounts Payable 26,000
Common Stock 50,000
Retained Earnings Dividends 15,000 94,150
Fees Earned Wages Expense 270,000 429,850
Rent Expense 63,000

Advertising Expense

25,200

Miscellaneous Expense 5,100
608,125 636,000

 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 $7,000.

b. A cash receipt of $8,200 was posted as a debit to Cash of $2,800.

c. A debit of $ 16300 to Accounts Receivable was not posted.

d. A return of $ 125 of defective supplies was erroneously posted as a $ 1.250 credit to Supplies

e. An insurance policy acquired at a cost of $3,600 was posted as a credit to Prepaid Insurance.

f. The balance of Notes Payable was understated by $9,000.

g. A credit of $ 10,000 in Accounts Payable was overlooked when determining the balance of the account

h. A debit of $5,000 for dividends was posted as a credit to Retained Earnings.

i. The balance of $60,300 in Rent Expense was entered as $63,000 in the trial balance.

j. Gas, Electricity, and Water Expense, with a balance of $16,350, was omitted from the trial balance.

Instructions

1. Prepare a corrected unadjusted trial balance as of May 31, 20Y6.

2. Does the fact that the unadjusted trial balance in (1) is balanced mean that there are no errors in the accounts? Explain.

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Chapter 2 Solutions

Corporate Financial Accounting
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 fees earned Prepare a journal...Ch. 2 - Journal entry for dividends Prepare a journal...Ch. 2 - Missing amount from an account On August 1, the...Ch. 2 - Trial balance errors For each of the following...Ch. 2 - Correcting entries The following errors took place...Ch. 2 - Horizontal analysis Two income statements for...Ch. 2 - Chart of accounts The following accounts appeared...Ch. 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 - Transactions Innovative Consulting Co. has the...Ch. 2 - Journalizing and posting On February 11, 20Y9,...Ch. 2 - Transactions and T accounts The following selected...Ch. 2 - Cash account balance During the month, Bavarian...Ch. 2 - Account balances A. During February, 186,500 was...Ch. 2 - Retained earnings account balance As of January 1,...Ch. 2 - Identifying transactions Rocky Mountain Tours Co....Ch. 2 - Journal entries Based upon the T accounts in...Ch. 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 - Total of Credit column: 525,000 Error in triad...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 - Entries into T accounts and trial balance Marjorie...Ch. 2 - Journal entries and trial balance On October 1,...Ch. 2 - Journal entries and trial balance On November...Ch. 2 - Journal entries and trial balance Elite Realty...Ch. 2 - Corrected trial balance The Lexington Group has...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 - Continuing Problem 4.Total of Debit column: 40,750...Ch. 2 - Analyze Amazon.com Amazon.com, Inc. (AMZN) is the...Ch. 2 - Analyze Chipotle Mexican Grill Chipotle Mexican...Ch. 2 - Analyze Vera Bradley. Inc. Vera Bradley, Inc....Ch. 2 - Analyze Target The following data (in millions)...Ch. 2 - Analyze Wal-Mart The following data (in millions)...Ch. 2 - Compare Target and Wal-Mart Based upon MAD 2-4 and...Ch. 2 - Ethics in Action Buddy Dupree is the accounting...Ch. 2 - Recording your tuition State College requires...Ch. 2 - Record transactions The following discussion took...

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