MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Accounting
12th Edition
ISBN: 9780134489728
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 2, Problem P2.33APGA
Correcting errors in a
Learning Objective 4
Total Debits $123,250
The trail balance of Beautiful Tots Child Care does not balance.
| BEAUTIFUL TOTS CHILD CARE Trial Balance August 31, 2018 |
||
| Balance |
||
| Account Title |
Debit |
Credit |
| Cash |
$7,900 |
|
| 6,700 |
||
| Office Supplies |
1,000 |
|
| Prepaid Insurance |
300 |
|
| Equipment |
91,500 |
|
| Accounts Payable |
$3,400 |
|
| Notes Payable |
45,000 |
|
| Trumball, Capital |
57,000 |
|
| Trumball, Withdrawals |
5,000 |
|
| Service Revenue |
12,350 |
|
| Rent Expense |
4,400 |
|
| Rent Expense |
750 |
|
| Total |
$117,550 |
$117,750 |
The following errors are detected:
a. Cash is understated by $1,500.
b. A $4,100 debn to Accounts Receivable was posted as a credit.
c. A $1,400 purchase of of?ce supplies on account was neitherjournalized nor posted.
d. Equipment was incorrectly transferred from the ledger as $91,500. It should have been transferred as $83,000.
e. Salaries Expense is overstated by $700.
f. A $300 cash payment for advertising expense was neither journalized nor posted.
g. A $200 owner's withdrawal of cash was incorrectlyjournalized as $2,000.
h. Service Revenue was understated by $4,100.
i. A 12-month insurance policy was posted as a $1,900 credit to Prepaid Insurance. Cash was posted correctly.
Prepare the corrected trial balance as of August 31, 2018.
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MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Accounting
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