Activity 2: Correcting Trial Balance Errors The Trial Balance for Palace Copy Center does not balance. The following errors were detected. a. The cash balance is overstated by P4,000. b. Office maintenance expense of P2,000 is omitted from the trial balance. c. Rent expense of P2.000 was posted as a credit rather than a debit. d. The balance of advertising expense is P3,000, but is listed as p4,000 on the trial balance. e. A P6,000 debit to accounts receivable was posted as P600. t. The balance of utilities expense is understated by P600. g. A P13.000 debit to the withdrawal account was posted as a debit to Loma Rodriguez, Capital. h. A PI,000 purchase of supplies on account was neither journalized nor posted. 1. A P56,000 credit to service revenue was not posted. i Office furniture should be listed in the amount of P13,000. Palace Copy Center Trial Balance October 31,2019 Account Title Cash Debit P 38,000 20,000 Credit Accounts receivable Supplies Office Fumiture Land 5,000 23,000 460,000 P20,000 183.000 Accounts payable Lona Rodriguez, Capital Lorna Rodriguez, Withdrawals Service revenue Salary expense Rent expense Advertising expense Utilities expense property tax expense Total 37,000 49.000 10,000 6,000 4,000 2,000 1,000 P606,000 P547,000 Required: Prepare the correct trial balance at October 31. (Journal entries are not required)
Activity 2: Correcting Trial Balance Errors The Trial Balance for Palace Copy Center does not balance. The following errors were detected. a. The cash balance is overstated by P4,000. b. Office maintenance expense of P2,000 is omitted from the trial balance. c. Rent expense of P2.000 was posted as a credit rather than a debit. d. The balance of advertising expense is P3,000, but is listed as p4,000 on the trial balance. e. A P6,000 debit to accounts receivable was posted as P600. t. The balance of utilities expense is understated by P600. g. A P13.000 debit to the withdrawal account was posted as a debit to Loma Rodriguez, Capital. h. A PI,000 purchase of supplies on account was neither journalized nor posted. 1. A P56,000 credit to service revenue was not posted. i Office furniture should be listed in the amount of P13,000. Palace Copy Center Trial Balance October 31,2019 Account Title Cash Debit P 38,000 20,000 Credit Accounts receivable Supplies Office Fumiture Land 5,000 23,000 460,000 P20,000 183.000 Accounts payable Lona Rodriguez, Capital Lorna Rodriguez, Withdrawals Service revenue Salary expense Rent expense Advertising expense Utilities expense property tax expense Total 37,000 49.000 10,000 6,000 4,000 2,000 1,000 P606,000 P547,000 Required: Prepare the correct trial balance at October 31. (Journal entries are not required)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Activity 2: Correcting Trial Balance Errors
The Trial Balance for Palace Copy Center does not balance. The following errors were detected.
a. The cash balance is overstated by P4,000.
b. Office maintenance expense of P2,000 is omitted from the trial balance.
c. Rent expense of P2,000 was posted as a credit rather than a debit.
d. The balance of advertising expense is P3,000, but is tisted as p4,000 on the trial balance.
e. A P6,000 debit to accounts receivable was posted as P600.
t. The balance of utilities expense is understated by P600.
g. A P13.000 debit to the withdrawal account was posted as a debit to Loma Rodriguez,
Capital.
h. A P1,000 purchase of supplies on account was neither journalized nor posted.
1. A P56,000 credit to service revenue was not posted.
i. Office furniture should be listed in the amount of P13,000.
Palace Copy Center
Trial Balance
October 31,2019
Debit
P 38,000
20,000
5.000
23,000
460,000
Account Title
Credit
Cash
Accounts receivable
Supplies
Office Fumiture
Land
P20,000
183,000
Accounts payable
Lorna Rodriguez, Capital
Lorna Rodriguez, Withdrawais
Service revenue
Salary expense
Rent expense
Advertising expense
Utilities expense
property tax expense
Total
37,000
49.000
10,000
6,000
4,000
2,000
1.000
P606.000
P547,000
Required: Prepare the correct trial balance at October 31. (Journal entries are not required)
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