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.

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

Problem 1Q

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Related questions

Question

	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.