Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN: 9781305654174
Author: Gary A. Porter, Curtis L. Norton
Publisher: Cengage Learning
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Textbook Question
Chapter 3, Problem 3.11MCP
The Detection of Errors in a
Malcolm Inc. was incorporated on January 1 with the issuance of capital stock in return for $90,000 of cash contributed by the owners. The only other transaction entered into prior to beginning operations was the issuance of a $75,300 note payable in exchange for building and equipment. The following trial balance was prepared at the end of the first month by the bookkeeper for Malcolm Inc.:
Required
- Identify the two errors in the trial balance. Ignore
depreciation expense and interest expense. - Prepare a corrected trial balance.
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The following information applies to the questions displayed below.] Mint Cleaning Incorporated prepared the following unadjusted trial balance at the end of its second year of operations ending December 31. (Assume amounts are reported in thousands of dollars.) Account Titles Debit Credit Cash $ 56 Accounts Receivable 5 Prepaid Insurance 8 Equipment 116 Accumulated Depreciation $ 0 Accounts Payable 5 Salaries and Wages Payable 0 Income Tax Payable 0 Common Stock 111 Retained Earnings 12 Sales Revenue 129 Insurance Expense 0 Salaries and Wages Expense 28 Supplies Expense 44 Income Tax Expense 0 Totals $ 257 $ 257 Other data not yet recorded at December 31: Insurance expired during the year, $6. Depreciation expense for the year, $5. Salaries and wages payable, $8. Income tax expense, $10. Required: 2-a. Post the beginning balances and adjusting entries to the following T-accounts. 2-b. Prepare an adjusted trial balance as of December 31.
The trial balance of Dunn Service Center, Inc., on March 1, 2018, lists the entity’s assets, liabilities, and stockholders’ equity on that date.During March, the business completed the following transactions: a. Borrowed $45,000 from the bank, with Dunn signing a note payable in the name of the business. b. Paid cash of $40,000 to a real estate company to acquire land. c. Performed a service for a customer and received cash of $5,000. d. Purchased supplies on credit, $300. e. Performed a service for a customer and earned $2,600 of revenue on account. f. Paid $1,200 on account. g. Paid the following cash expenses: salaries, $3,000; rent, $1,500; and interest, $400. h. Received $3,100 on account. i. Received a $200 utility bill that will be paid next week.j. Declared and paid a dividend of $1,800Requirements■ Assets—Cash, $26,000; Accounts Receivable, $4,500; Supplies, no balance; Land, no balance ■ Liabilities—Accounts Payable, $2,000; Note Payable, no balance ■ Stockholders’…
The trial balance of Dunn Service Center, Inc., on March 1, 2018, lists the entity’s assets, liabilities, and stockholders’ equity on that date.During March, the business completed the following transactions: a. Borrowed $45,000 from the bank, with Dunn signing a note payable in the name of the business. b. Paid cash of $40,000 to a real estate company to acquire land. c. Performed a service for a customer and received cash of $5,000. d. Purchased supplies on credit, $300. e. Performed a service for a customer and earned $2,600 of revenue on account. f. Paid $1,200 on account. g. Paid the following cash expenses: salaries, $3,000; rent, $1,500; and interest, $400. h. Received $3,100 on account. i. Received a $200 utility bill that will be paid next week.j. Declared and paid a dividend of $1,800Requirements1. Use the T-account format to create the following accounts and balances:■ Assets—Cash, $26,000; Accounts Receivable, $4,500; Supplies, no balance; Land, no balance ■…
Chapter 3 Solutions
Financial Accounting: The Impact on Decision Makers
Ch. 3 - Read each definition below and write the number of...Ch. 3 - Types of Events For each of the following events,...Ch. 3 - Prob. 3.2ECh. 3 - The Effect of Transactions on the Accounting...Ch. 3 - Types of Transactions There are three elements to...Ch. 3 - Balance Sheet Accounts and Their Use Choose from...Ch. 3 - Normal Account Balances Each account has a normal...Ch. 3 - Prob. 3.7ECh. 3 - Prob. 3.8ECh. 3 - Trial Balance The following list of accounts was...
Ch. 3 - Journal Entries Recorded Directly in T Accounts...Ch. 3 - Prob. 3.11MCECh. 3 - Determining an Ending Account Balance Jessies...Ch. 3 - Reconstructing a Beginning Account Balance During...Ch. 3 - Journal Entries Prepare the journal entry to...Ch. 3 - Journal Entries Following is a list of...Ch. 3 - Journal Entries for Vail Resorts Refer to the...Ch. 3 - Prob. 3.17MCECh. 3 - Prob. 3.1PCh. 3 - Transaction Analysis and Financial Statements Just...Ch. 3 - Transaction Analysis and Financial Statements...Ch. 3 - Transactions Reconstructed from Financial...Ch. 3 - Prob. 3.5MCPCh. 3 - Prob. 3.6MCPCh. 3 - Transaction Analysis and Journal Entries Recorded...Ch. 3 - Prob. 3.8MCPCh. 3 - Journal Entries Atkins Advertising Agency began...Ch. 3 - Prob. 3.10MCPCh. 3 - The Detection of Errors in a Trial Balance and...Ch. 3 - Journal Entries, Trial Balance, and Financial...Ch. 3 - Journal Entries, Trial Balance, and Financial...Ch. 3 - Prob. 3.1APCh. 3 - Prob. 3.2APCh. 3 - Prob. 3.3APCh. 3 - Transactions Reconstructed from Financial...Ch. 3 - Prob. 3.5AMCPCh. 3 - Accounts Used to Record Transactions A list of...Ch. 3 - Prob. 3.7AMCPCh. 3 - Trial Balance and Financial Statements Refer to...Ch. 3 - Journal Entries Castle Consulting Agency began...Ch. 3 - Prob. 3.10AMCPCh. 3 - Entries Prepared from a Trial Balance and Proof of...Ch. 3 - Journal Entries Overnight Delivery Inc. is...Ch. 3 - Journal Entries and a Balance Sheet Krittersbegone...Ch. 3 - Prob. 3.1DCCh. 3 - Prob. 3.2DCCh. 3 - Prob. 3.3DCCh. 3 - Prob. 3.4DCCh. 3 - Prob. 3.5DCCh. 3 - Prob. 3.6DCCh. 3 - Prob. 3.7DC
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