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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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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
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