Chapter 4.4, Problem 1OYO

1.The purpose of posting journal entries to the ledgerA. So that trial balance can be prepared.B. To make sure that debit and credit are equal.C. To prove the equality of debit and credit.D. To obtain updated account balance 2.Which of the following account title that is differently classified from the otherlisted?A. Service revenueB. Depreciation expenseC. Supplies inventoryD. Uncollectible account 3. Sissy Store has a P50,000.00 receivable from Samantha. On September 5, Samantha makes a partial payment of P30,000.00 to Sissy Store. The journal entry on September 5 to be recorded by Sissy Store is:A. Debit: Cash. Credit: Accounts Receivable, P30,000.B. Debt: Accounts Receivable: Credit Service Revenue, P50,000.C. Debit: Cash. Credit: Accounts Receivable, P50.000D. Debit: Cash, Credit Accounts Receivable, P20.000. 4. Mr. A received an advancement payment for wedding services worthP10,000. Thiswill result to-A. Debit: Unearned Revenue, P10,000.B. Credit: Cash, P10,606.C. Credit:…

Analyzing accounting errors Courtney Meehan has trouble keeping her debits and credits equal. During a recent month, Courtney made the following accounting errors: a. In preparing the trial balance, Courtney omitted a $5,000 Notes Payable. The debit to Cash was correct. b. Courtney posted a $1,000 Utilities Expense as $100. The credit to Cash was correct. c. In recording a $600 payment on account, Courtney debited Furniture instead of Accounts Payable. d. In Journalizing a receipt of cash for service revenue, Courtney debited Cash for $50 instead of the correct amount of $500. The credit was correct. e. Courtney recorded a $210 purchase of office supplies on account by debiting Office Supplies for $120 and crediting Accounts Payable for $120. Requirements For each of these errors, state whether total debits equal total credits on the trial balance. Identify each account that has an incorrect balance and the amount and direction of the error (e.g., “Accounts Receivable $500 too high”).

Entries to Correct Errors The following errors took place in journalizing and posting transactions: Insurance of $5,400 paid for the current year was recorded as a debit to Insurance Expense and a credit to Prepaid Insurance. A withdrawal of $12,000 by Brian Phillips, owner of the business, was recorded as a debit to Wages Expense and a credit to Cash. Journalize the entries to correct the errors. For part a, first reverse the original entry and then make the correct entry. a. Prepaid Insurance        Insurance Expense        Prepaid Insurance        Cash      b. Brian Phillips, Drawing        Wages Expense