College Accounting (Book Only): A Career Approach
13th Edition
ISBN: 9781337280570
Author: Scott, Cathy J.
Publisher: South-Western College Pub
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Textbook Question
Chapter 3, Problem 6E
The bookkeeper for Nevado Company has prepared the following
The bookkeeper has asked for your help. In examining the company’s journal and ledger, you discover the following errors. Use this information to construct a corrected trial balance.
- a. The debits to the Cash account total $8,000, and the credits total $3,300.
- b. A $500 payment to a creditor was entered in the journal correctly but was not posted to the Accounts Payable account.
- c. The first two numbers in the balance of the
Accounts Receivable account were transposed when the balance was copied from the ledger to the trial balance. - d. The $1,500 amount withdrawn by the owner for personal use was debited to Miscellaneous Expense by mistake—it was correctly credited to Cash.
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At Crane Company, the following errors were discovered after the transactions had been journalized and posted.
1.
A collection on account from a customer for $960 was recorded as a debit to Cash $960 and a credit to Service Revenue $960.
2.
The purchase of store supplies on account for $1,560 was recorded as a debit to Supplies $1,190 and a credit to Accounts Payable $1,190.
Jinan Company, the following errors were discovered after the transactions had
been journalized and posted.
Instructions: Prepare the correcting entries without reversing the incorrect entry.
A collection on account from a customer for $780 was recorded as a debit to Cash $780 and a credit to Service Revenue $780.
The purchase of store supplies on account for $1,570 was recorded as a debit to Store Supplies $1,750 and a credit to Accounts Payable $1,750.
An employee working on her first trial balance discovers that the Equipment account has a credit balance of $2500 and a customer's A/R account has a credit balance of $25.
Based on the knowledge you have gained in this course and how account balances are recorded and increase/decrease, has the accountant made a mistake in her records or are these situations possible?
Chapter 3 Solutions
College Accounting (Book Only): A Career Approach
Ch. 3 - A __________ is a book in which business...Ch. 3 - Transferring information from the journal to the...Ch. 3 - For a journal entry to be complete, it must...Ch. 3 - The __________ is used to determine where the...Ch. 3 - Prob. 5QYCh. 3 - A 250 payment for salaries expense was incorrectly...Ch. 3 - Prob. 1DQCh. 3 - How does the journal differ from the ledger?Ch. 3 - What is the purpose of providing a ledger account...Ch. 3 - List by account classification the order of the...
Ch. 3 - Arrange the following steps in the posting process...Ch. 3 - Prob. 6DQCh. 3 - Prob. 7DQCh. 3 - In the following two-column journal, the capital...Ch. 3 - Decor Services completed the following...Ch. 3 - Montoya Tutoring Service completed the following...Ch. 3 - Prob. 4ECh. 3 - Arrange the following steps in the posting process...Ch. 3 - The bookkeeper for Nevado Company has prepared the...Ch. 3 - Determine the effect of the following errors on a...Ch. 3 - Journalize correcting entries for each of the...Ch. 3 - The chart of accounts of the Barnes School is...Ch. 3 - Laras Landscaping Service has the following chart...Ch. 3 - Following is the chart of accounts of Sanchez...Ch. 3 - The chart of accounts of Ethan Academy is shown...Ch. 3 - Leanders Landscaping Service maintains the...Ch. 3 - Following is the chart of accounts of Smith...Ch. 3 - Why Does It Matter? ECOTOUR EXPEDITIONS, INC.,...Ch. 3 - What Would You Say? You are the new bookkeeper for...Ch. 3 - What Do You Think? You work as an accounting...Ch. 3 - What Would You Do?
You are responsible for...Ch. 3 - Prob. 1CP
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