Corporate Financial Accounting
14th Edition
ISBN: 9781305653535
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 2, Problem 2.5BPR
Corrected
Tech Support Services has the following unadjusted trial balance as of January 31, 2018:
| Tech Support Services Unadjusted Trial Balance January 31, 2018 | ||
| Debit Balances | Credit Balances | |
| Cash | 25,550 | |
| Accounts Receivable | 44,050 | |
| Supplies | 6,660 | |
| Prepaid Insurance | 3,600 | |
| Equipment | 162,000 | |
| Notes Payable | 75,000 | |
| Accounts Payable | 13,200 | |
| Common Stock | 18,000 | |
| 83,850 | ||
| Dividends | 33,000 | |
| Fees Earned | 534,000 | |
| Wages Expense | 306,000 | |
| 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. 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 poky 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 dividends was posted as a debit to Retained Earnings.
- 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, 2018.
- 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 - 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 - 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 one of the most common forms...
Ch. 2 - Rules of debit and credit and normal balances...Ch. 2 - Prob. 2.2BECh. 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 - 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 - Transactions Zenith Consulting Co. has the...Ch. 2 - Journalizing and posting On October 3, 2018, Regal...Ch. 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 Napa Tours Co. is a...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 - Prob. 2.22EXCh. 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 1,...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 - The transactions completed by PS Music during June...Ch. 2 - Continuing Company AnalysisAmazon: Horizontal...Ch. 2 - Chipotle: Horizontal analysis Chipotle Mexican...Ch. 2 - Prob. 2.3ADMCh. 2 - Prob. 2.4ADMCh. 2 - Prob. 2.1TIF
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