close solutoin list

Corrected trial balance 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 Retained Earnings 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.

BuyFind

Financial & Managerial Accounting

14th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337119207
BuyFind

Financial & Managerial Accounting

14th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337119207

Solutions

Chapter
Section
Chapter 2, Problem 2.5BPR
Textbook Problem

Corrected trial balance

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
Retained Earnings   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. 1. Prepare a corrected unadjusted trial balance as of January 31, 2018.
  2. 2. Does the fact that the unadjusted (trial balance in (1) is balanced mean that there are no errors in the accounts? Explain.

Expert Solution

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

See Solution

*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Chapter 2 Solutions

Financial & Managerial Accounting
Show all chapter solutions
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 - 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 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 - 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 - 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 - Target: Horizontal analysis The following data (in...Ch. 2 - Walmart: Horizontal analysis The following data...Ch. 2 - Ethics in Action Buddy Dupree is the accounting...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions
A sinking fund can be set up in one of two ways: The corporation makes annual payments to the trustee, who inve...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)