Pearson eText for Financial Accounting -- Instant Access (Pearson+)
5th Edition
ISBN: 9780137525423
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON+
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 2, Problem 30BE
1.
To determine
Discuss whether the given error would cause the total debits and total credits on the
2.
To determine
Identify the incorrect balance for the given account, and indicate the amount and direction to of the error.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
1. Using the quick tests for locating errors, find the error in each of the two questions below.
Describe the type of error, explain how you discovered it, and make corrections.
a)
GENERAL JOURNAL
PARTICULARS
DEBIT
6 0 00
31 ol ol ol -
CREDIT
Bank
Equipment
Сapital
90 0 0
Supplies
10 0
Accounts Payable
10 0
25o
Expense
Bank
250
Accounts Receivable
16 8 -
Revenue
16 8
Bank
50
Accounts Receivable
50
Drawings
Bank
Bank
Accounts Receivable
Supplies
6 000 -
250
168
50-
100
50
72
6 050-
122-
118
5 728
Equipment
3 000
Accounts Payable
Capital
100 –
9 000
Drawings
Revenue
Experse
72 -
168 -
205
It is the end of the month, and you cannot get the reconciliation difference to come to $0. Below is a screenshot of the reconciliation and the bank statement. What is the reason for the error?
Teacher Feedback: Look at this again to find the error. Was the information from the bank statement properly entered into the QBO reconciliation?
I tried but don’t know how. I need an example can someone show me using this?
Chapter 2 Solutions
Pearson eText for Financial Accounting -- Instant Access (Pearson+)
Ch. 2 - The order in which assets were listed and...Ch. 2 - Prob. 2DQCh. 2 - How is revenue related to retained earnings?Ch. 2 - Prob. 4DQCh. 2 - Prob. 5DQCh. 2 - Prob. 6DQCh. 2 - Prob. 7DQCh. 2 - Distinguish between journalizing and posting.Ch. 2 - True or false: If the trial balance is in balance,...Ch. 2 - When it is time to prepare the financial...
Ch. 2 - Which sequence of actions correctly summarizes the...Ch. 2 - Prob. 2SCCh. 2 - Prob. 3SCCh. 2 - Prob. 4SCCh. 2 - Prob. 5SCCh. 2 - Which journal entry records obtaining a bank loan...Ch. 2 - RV Wholesale, Inc., paid 1,200 for supplies and...Ch. 2 - Prob. 8SCCh. 2 - Prob. 9SCCh. 2 - Prob. 10SCCh. 2 - Prob. 11SCCh. 2 - Prob. 12SCCh. 2 - Prob. 1SECh. 2 - Prob. 2SECh. 2 - Prob. 3SECh. 2 - Prob. 4SECh. 2 - Accounting terminology (Learning Objectives 2, 3, ...Ch. 2 - Effects of debits and credits on accounts...Ch. 2 - Balancing accounts and normal balances (Learning...Ch. 2 - Types of accounts and effects of debits and...Ch. 2 - Re-creating journal entries from T-account...Ch. 2 - Journalizing transactions (Learning Objective 3)...Ch. 2 - Prob. 11SECh. 2 - Prob. 12SECh. 2 - Prob. 13SECh. 2 - Accounting terminology (Learning Objectives 1, 2,...Ch. 2 - Prob. 15AECh. 2 - Journalizing transactions (Learning Objective 3)...Ch. 2 - Prob. 17AECh. 2 - Balancing accounts and preparing a trial balance...Ch. 2 - Prob. 19AECh. 2 - Prob. 20AECh. 2 - Prob. 21AECh. 2 - Prob. 22AECh. 2 - Prob. 23BECh. 2 - Prob. 24BECh. 2 - Prob. 25BECh. 2 - Balancing accounts and preparing a trial balance...Ch. 2 - Recording transactions and preparing a trial...Ch. 2 - Prob. 28BECh. 2 - Prob. 29BECh. 2 - Prob. 30BECh. 2 - Prob. 31APCh. 2 - Prob. 32APCh. 2 - Journalizing, posting, and preparing a trial...Ch. 2 - Prob. 34APCh. 2 - Preparing a trial balance, income statement,...Ch. 2 - Prob. 36APCh. 2 - Prob. 37BPCh. 2 - Prob. 38BPCh. 2 - Prob. 39BPCh. 2 - Prob. 40BPCh. 2 - Prob. 41BPCh. 2 - Prob. 42BPCh. 2 - Prob. 1CECh. 2 - Prob. 1CPCh. 2 - Prob. 1CFSAPCh. 2 - Prob. 1EIACh. 2 - Prob. 2EIACh. 2 - Prob. 1FACh. 2 - Prob. 1IACh. 2 - Prob. 1SBACh. 2 - Prob. 1WC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- At the end of the month you are reconciling your checking account and you cannot get the reconciliation difference to come to $0. Below is a screen shot of the reconciliation and the bank statement. What is the reason for the error?arrow_forward(Learning Objective 1: Show how to speed up cash from receivables) Patterson ShirtCompany sells on credit and manages its own receivables. Average experience for the past threeyears has been the following:Sales..................................................Cost of goods sold.............................Uncollectible-account expense...........Other expenses..................................Cash$250,000125,000—82,500Credit$250,000125,00018,00082,500Total$500,000250,00018,000165,000The owner of Patterson is considering whether to accept credit cards (VISA and MasterCard)instead of granting credit to customers. If Patterson were to accept credit cards, the ownerexpects total sales to increase by 10% but cash sales to remain unchanged. Further, if Pattersonwere to accept credit cards, the business can save $9,000 on other expenses, but the credit cardprocessors charge 3% on credit card sales.Requirement1. Should Patterson Shirt Company start accepting credit cards? Show the computations…arrow_forwardJanet works in the credit department handling accounts receivable transactions. At the end of each period, the allowance for uncollectible accounts has a larger and larger debit balance. What may be going wrong here? What possible corrections should be made?arrow_forward
- Hi I'm copying this question from my school text, the version of which you don't have on your site. I can't seem to get to the given answer.... Liang Company began operations in Year 1. During it's first two years, the company completed a number of transactions involveing sales on credit, accounts receivable collections and bad debts. These transactions are summarized as follows. Year 1 a. Sold $1,345,434 of merchandise (that had costs $975,000) on credit, terms n/30. b. Wrote off $18,300 of uncollectivle accounts receivable c. Received $669,200 cash in payments of acccounts receivable. d. In adjusting the accounts on Decmeber 31, the company estimated that 1.5% of accounts receivable would be uncollectible. We are to prepare the journal entries to record Liang's Summariezed trasnsactions and its year end adjustments to record bad debts expenses. The company uses the perpectual inventory system and it applies the allowance method for it's accounts receiveable. Round to the nearest…arrow_forwardIf a bookkeeper mistakenly records a disbursement as $69 instead of the correct amount of $96, the error should be shown on the bank reconciliation as a: OA. $27 addition to the balance per books. O B. $165 deduction from the balance per books. O C. $27 deduction from the balance per books. O D. $165 addition to the balance per books. Click to select your answer. 11:59pm 99+arrow_forwardbackground info: Green checkmark means that entry is correct, red is wrong. There is only supposed to be a total of 19 entries. look at 1 picture with the complete journal and adjust to fit the allowance method to go into the second table with green and red corrections. The first entry....you are removing the account so you have to remove the allowance and related receivable (2 parts) The second entry...you want to record the cash received, the removal of the allowance and related receivable (3 parts) The third entry...recording a credit sales (2 parts) The fourth entry...setting up receivable and the allowance (2 parts) The fifth entry...record collection of a previously recorded credit sale (2 parts) The sixth entry...record collection of a previously recorded credit sale (2 parts) The seventh entry...adjusting the allowance by reducing the allowance and reducing 5 customer receivable accounts (6 parts) 1. Finalize the journal entries shown on the Fan-Tastic Sports Gear Inc. panel…arrow_forward
- Identify checks outstanding as of end June 2016arrow_forwardResolving Errors and Correcting a Trial Balance Assume we examine the accounts of Century Inc. and identify the following errors. 1. Equipment purchased for $37,500 at year-end was debited to Expenses. 2. Sales on credit of $4,145 were debited to Accounts Receivable for $4,460 and credited to Revenues for $4,145. 3. A $30,000 cash collection on accounts receivable was debited to Cash and credited to Revenues. 4. The inventory amount is understated by $10,000 because the entry to record the purchase of $10,000 of inventory was incorrectly recorded in cost of goods sold (cost of goods sold is included in Expenses). The unadjusted trial balance of Century Inc. is provided below. Prepare a correct unadjusted trial balance, correcting for all errors, including improper recording of debits and credits. Note: Do not use negative sign in your answers. Accounts Cash Accounts receivable Allowance for doubtful accounts Inventory Equipment Accumulated depreciation Accounts payable Notes payable…arrow_forwardAt year-end, a trial balance showed total credits exceeding total debits by $6,050. This difference could have been caused by: Multiple Choice An error in the general journal where a $6,050 increase in Accounts Receivable was recorded an increase in Cash. A net income of $6,050. The belance of $60,500 in Accounts Payable being entered in the trial balance as $6,050. The balance of $6,820 in the Office Equipment account being entered on the trial balance as a debi: of $770. An error in the general journal where a $6,050 increase in Accounts Payable was recorded as a decrease in Accounts Payable.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
Accounts Receivable and Accounts Payable; Author: The Finance Storyteller;https://www.youtube.com/watch?v=x_aUWbQa878;License: Standard Youtube License