Homework Help is Here – Start Your Trial Now!
Business
Accounting
I'll upvote if complete and correct. Thank you

I'll upvote if complete and correct. Thank you

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
100%
I'll upvote if complete and correct. Thank you
Preparing a Corrected Trial Balance The following trial balance of Splendid Household Services as of December 31, 2019 does not balance because of a number of errors: Debit P 13,000 30,840 8,700 Credit Cash Accounts receivable Supplies Prepaid insurance Equipment Notes Payable Accounts Payable S, Capital S, Drawing Service Income 2,140 69,400 P 14,000 5,650 31,200 2,000 147,500 Wages expense Rent expense Advertising expense Utility expense Total 46,500 6,000 510 1,920 P. 181,010 P. 198,350 In the process comparing the amounts in the trial balance with the ledger, re-computing the balances of the accounts, and comparing the postings with the journal entries, the errars described below were discovered: a. The balance of cash was understated by P5,000. b. The cash receipts of P1,200 was posted as debit to cash of P2,100. c. A credit of P600 to accounts receivable was not posted. d. Areturn of P750 of defective supplies purchased was erroneously posted as P570 credit to supplies. e. An insurance policy acquired at cost of P1,480 was posted as a credit to prepaid insurance. f. A debit of P2,250 in accounts payable was overlooked when determining the balance of the account. g. The balance of notes payable was overstated by P1,000. h. A debit of P5,100 in advertising expense was entered as P510 in the trial balance. i. Miscellaneous expense with a balance of P3,220 was omitted from the trial balance. Instruction: Prepare a corrected trial balance as of December 31, 2019.
Transcribed Image Text:Preparing a Corrected Trial Balance The following trial balance of Splendid Household Services as of December 31, 2019 does not balance because of a number of errors: Debit P 13,000 30,840 8,700 Credit Cash Accounts receivable Supplies Prepaid insurance Equipment Notes Payable Accounts Payable S, Capital S, Drawing Service Income 2,140 69,400 P 14,000 5,650 31,200 2,000 147,500 Wages expense Rent expense Advertising expense Utility expense Total 46,500 6,000 510 1,920 P. 181,010 P. 198,350 In the process comparing the amounts in the trial balance with the ledger, re-computing the balances of the accounts, and comparing the postings with the journal entries, the errars described below were discovered: a. The balance of cash was understated by P5,000. b. The cash receipts of P1,200 was posted as debit to cash of P2,100. c. A credit of P600 to accounts receivable was not posted. d. Areturn of P750 of defective supplies purchased was erroneously posted as P570 credit to supplies. e. An insurance policy acquired at cost of P1,480 was posted as a credit to prepaid insurance. f. A debit of P2,250 in accounts payable was overlooked when determining the balance of the account. g. The balance of notes payable was overstated by P1,000. h. A debit of P5,100 in advertising expense was entered as P510 in the trial balance. i. Miscellaneous expense with a balance of P3,220 was omitted from the trial balance. Instruction: Prepare a corrected trial balance as of December 31, 2019.
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Financial Planning
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
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS