1. How much out of balance is the trial balance? The error lies in the Accounts Receivable account. What is the correct balance of Accounts Receivable? 2. All Build Inc. also failed to record the following transactions during December. a. Purchased additional land for $60,000 by signing a note payable. b. Earned service revenue on account, $9,200. c. Paid salary expense of $1,000. d. Purchased a TV advertisement for $1,000 on account. This account will be paid during January. Add these amounts to, or subtract them from, the appropriate accounts to properly include the effects of these transactions. Then prepare the corrected trial balance of All Build Inc. 3. After correcting the accounts, advise the top management of All Build Inc. on the company's: a. Total assets. b. Total liabilities. c. Net income or loss.
1. How much out of balance is the trial balance? The error lies in the Accounts Receivable account. What is the correct balance of Accounts Receivable? 2. All Build Inc. also failed to record the following transactions during December. a. Purchased additional land for $60,000 by signing a note payable. b. Earned service revenue on account, $9,200. c. Paid salary expense of $1,000. d. Purchased a TV advertisement for $1,000 on account. This account will be paid during January. Add these amounts to, or subtract them from, the appropriate accounts to properly include the effects of these transactions. Then prepare the corrected trial balance of All Build Inc. 3. After correcting the accounts, advise the top management of All Build Inc. on the company's: a. Total assets. b. Total liabilities. c. Net income or loss.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please don't give image format
Transcribed Image Text:The trial balance of All Build Inc. at December 31, 2020, does not balance.
(Click the icon to view the trial balance.)
Requirements
Requirement 1. How much out of balance is the trial balance? The error lies in the Accounts Receivable account. What is the correct balance of Accounts Receivable?
In order to correct the trial balance, you first need to produce the trial balance using the amounts stated.
Data Table
Cash
Accounts receivable
Land...
Accounts payable
Note payable..........
3,700
6,800
35,000
5,650
4,700
Print
Common shares... $
Retained earnings
Service revenue
Salary expense....
Advertsing expense....
Done
20,000
7,500
8,900
3,500
900
X
Requirements
1.
How much out of balance is the trial balance? The error lies in the
Accounts Receivable account. What is the correct balance of Accounts
Receivable?
2. All Build Inc. also failed to record the following transactions during
December.
a. Purchased additional land for $60,000 by signing a note payable.
b. Earned service revenue on account, $9,200.
c. Paid salary expense of $1,000.
d. Purchased a TV advertisement for $1,000 on account. This account
will be paid during January.
Add these amounts to, or subtract them from, the appropriate accounts
to properly include the effects of these transactions. Then prepare the
corrected trial balance of All Build Inc.
3. After correcting the accounts, advise the top management of All Build
Inc. on the company's:
a. Total assets.
b. Total liabilities.
c. Net income or loss.
Print
Done
X
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education