Horngren's Accounting - Acc122: Accounting Principles 1- Third Custom Edition For Borough Of Manhattan Community College
1st Edition
ISBN: 9781323410530
Author: Pearson
Publisher: PEARSON C
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Chapter 2, Problem P2.39BPGB
Correcting errors in a
Learning Objective 4 Total Debits $123,300 |
LOVE TO LEARN CHILD CARE Trial Balance May 31, 2018 | ||
Balance | ||
Account Title | Debit | Credit |
Cash | $8,060 | |
8,700 | ||
Office Supplies | 1,000 | |
Prepaid Insurance | 1,700 | |
Equipment | 90,400 | |
Accounts Payable | $3,000 | |
Notes Payable | 45,000 | |
Ebony, Capital | 54,000 | |
Ebony, Withdrawals | 3,740 | |
Service Revenue | 4,350 | |
Salaries Expense | 16,300 | |
Rent Expense | 400 | |
Total | $118,350 | $118,300 |
The trial balance of Love to Learn Child Care does not balance.
The following errors are detected.
- Cash is understated by $1,800.
- A $3,800 debit to Accounts Receivable was posted as a credit.
- A $1,000 purchase of office supplies on account was neither journalized nor posted.
- Equipment was incorrectly transferred from the ledger as $90,400. It should have been transferred as $82,500.
- Salaries Expense is overstated by $350.
- A $300 cash payment for advertising expense was neither journalized nor posted.
- A $160 owner’s withdrawal of cash was incorrectly journalized as $1,600.
- Service Revenue was understated by $4,000.
- A 12-month insurance policy was posted as a $1, 400 credit to Prepaid Insurance. Cash was posted correctly.
Prepare the corrected trial balance as of May 31, 2018.
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Chapter 2 Solutions
Horngren's Accounting - Acc122: Accounting Principles 1- Third Custom Edition For Borough Of Manhattan Community College
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