Katie Long owns and operates KL Company. Transactions for the month of March have been posted to the T accounts. An intern has prepared a trial balance from the T accounts, but there seem to be some errors.   Required: 1. In the Transactions panel, descriptions of the transactions for the month of March are provided. Each of the transactions in the Transactions panel has been posted to the T accounts. Referring to the T accounts, select the date on which each transaction occurred, enter the amount of the transaction, and select the account to debit and credit. 2. The trial balance prepared by the intern can be found in the Trial Balance: Unequal Totals panel. The intern is puzzled by the unequal totals. Prepare a corrected trial balance on the Trial Balance: Correct panel. 3. Compare the trial balance prepared by the intern (Trial Balance: Unequal Totals) to the trial balance that you prepared (Trial Balance: Correct). Use the table provided in the Errors in Trial Balance panel to select the accounts for each type of error. 4. The intern is puzzled and asks “Are you sure the accounting equation is still in balance?” Using the corrected trial balance you prepared, prove that the accounting equation is in balance. Still puzzled, the intern asks “Why do none of the amounts in the accounting equation equal the totals on the trial balance?” Explain. Cash 3/1 17,600.00 3/3 2,500.00 3/25 7,650.00 3/27 1,275.00 3/30 8,050.00 3/29 3,425.00     3/31 1,950.00         Accounts Receivable 3/18 9,950.00 3/30 8,050.00         Supplies 3/7 1,500.00             Equipment 3/2 17,000.00             Accounts Payable 3/27 1,275.00 3/7 1,500.00         Notes Payable     3/2 17,000.00         Katie Long, Capital     3/1 17,600.00         Katie Long, Drawing 3/31 1,950.00             Fees Earned     3/18 9,950.00     3/25 7,650.00         Rent Expense 3/3 2,500.00             Wages Expense 3/29 3,425.00               Unequal totals trial balance  The intern has prepared the following trial balance for the month of March.   KL Company UNADJUSTED TRIAL BALANCE March 31, 2018     ACCOUNT TITLE DEBIT CREDIT 1 Cash 11,050.00   2 Accounts Receivable   1,900.00 3 Supplies 5,100.00   4 Equipment 17,000.00   5 Accounts Payable 225.00   6 Notes Payable   17,000.00 7 Katie Long, Capital   17,600.00 8 Katie Long, Drawing   1,950.00 9 Fees Earned   2,300.00 10 Rent Expense 2,500.00   11 Wages Expense   3,425.00 12 Totals 35,875.00 44,175.00   Trial balance corrected  The trial balance prepared by the intern can be found in the Trial Balance: Unequal Totals panel. The intern is puzzled by the unequal totals. Prepare a corrected trial balance.   KL Company UNADJUSTED TRIAL BALANCE March 31, 2018     ACCOUNT TITLE DEBIT CREDIT 1 Cash     2 Accounts Receivable     3 Supplies     4 Equipment     5 Accounts Payable     6 Notes Payable     7 Katie Long, Capital     8 Katie Long, Drawing     9 Fees Earned     10 Rent Expense     11 Wages Expense     12 Totals       The intern is puzzled and asks “Are you sure the accounting equation is still in balance?” Using the corrected trial balance you prepared, prove that the accounting equation is in balance. Assets = Liabilities + Owner’s Equity   =   +     Still puzzled, the intern asks “Why do none of the amounts in the accounting equation equal the totals on the trial balance?”  Check all that apply.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Katie Long owns and operates KL Company. Transactions for the month of March have been posted to the T accounts. An intern has prepared a trial balance from the T accounts, but there seem to be some errors.
  Required:
1. In the Transactions panel, descriptions of the transactions for the month of March are provided. Each of the transactions in the Transactions panel has been posted to the T accounts. Referring to the T accounts, select the date on which each transaction occurred, enter the amount of the transaction, and select the account to debit and credit.
2. The trial balance prepared by the intern can be found in the Trial Balance: Unequal Totals panel. The intern is puzzled by the unequal totals. Prepare a corrected trial balance on the Trial Balance: Correct panel.
3. Compare the trial balance prepared by the intern (Trial Balance: Unequal Totals) to the trial balance that you prepared (Trial Balance: Correct). Use the table provided in the Errors in Trial Balance panel to select the accounts for each type of error.
4. The intern is puzzled and asks “Are you sure the accounting equation is still in balance?” Using the corrected trial balance you prepared, prove that the accounting equation is in balance. Still puzzled, the intern asks “Why do none of the amounts in the accounting equation equal the totals on the trial balance?” Explain.
Cash
3/1 17,600.00 3/3 2,500.00
3/25 7,650.00 3/27 1,275.00
3/30 8,050.00 3/29 3,425.00
    3/31 1,950.00
       
Accounts Receivable
3/18 9,950.00 3/30 8,050.00
       
Supplies
3/7 1,500.00    
       
Equipment
3/2 17,000.00    
       
Accounts Payable
3/27 1,275.00 3/7 1,500.00
       
Notes Payable
    3/2 17,000.00
       
Katie Long, Capital
    3/1 17,600.00
       
Katie Long, Drawing
3/31 1,950.00    
       
Fees Earned
    3/18 9,950.00
    3/25 7,650.00
       
Rent Expense
3/3 2,500.00    
       
Wages Expense
3/29 3,425.00    
       
 
Unequal totals trial balance 
The intern has prepared the following trial balance for the month of March.
 
KL Company
UNADJUSTED TRIAL BALANCE
March 31, 2018
 
  ACCOUNT TITLE DEBIT CREDIT
1
Cash
11,050.00
 
2
Accounts Receivable
 
1,900.00
3
Supplies
5,100.00
 
4
Equipment
17,000.00
 
5
Accounts Payable
225.00
 
6
Notes Payable
 
17,000.00
7
Katie Long, Capital
 
17,600.00
8
Katie Long, Drawing
 
1,950.00
9
Fees Earned
 
2,300.00
10
Rent Expense
2,500.00
 
11
Wages Expense
 
3,425.00
12
Totals
35,875.00
44,175.00
 
Trial balance corrected 
The trial balance prepared by the intern can be found in the Trial Balance: Unequal Totals panel. The intern is puzzled by the unequal totals. Prepare a corrected trial balance.
 
KL Company
UNADJUSTED TRIAL BALANCE
March 31, 2018
 
  ACCOUNT TITLE DEBIT CREDIT
1
Cash
 
 
2
Accounts Receivable
 
 
3
Supplies
 
 
4
Equipment
 
 
5
Accounts Payable
 
 
6
Notes Payable
 
 
7
Katie Long, Capital
 
 
8
Katie Long, Drawing
 
 
9
Fees Earned
 
 
10
Rent Expense
 
 
11
Wages Expense
 
 
12
Totals
 
 
 
The intern is puzzled and asks “Are you sure the accounting equation is still in balance?” Using the corrected trial balance you prepared, prove that the accounting equation is in balance.
Assets
=
Liabilities
+
Owner’s Equity
 
=
 
+
 
 
Still puzzled, the intern asks “Why do none of the amounts in the accounting equation equal the totals on the trial balance?”  Check all that apply.
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