d insenEX 2-17Effect of errors on trial balanceIndicate which of the following errors, each considered individually, would cause thetrial balance totals to be unequal:a A fee of $21,000 earned and due from a client was not debited to Accoonts Receivableor credited to a revenue account, because the cash had not been received.b. A receipt of $11,300 from an account receivable was journalized and posted as a debitof $11,300 to Cash and a credit of $11,300 to Fees Earned.OBL4C. A payment of $4,950 to a creditor was posted as a debit of $4,950 to Accounts Pay-able and a debit of $4,950 to Cash.d. A payment of $5,000 for equipment purchased was posted as a debi of $500 to Equip-ment and a credit of $500 to Cash.e. Payment of a cash dividends of $19,000 was journalized and posted as a debit of$1,900 to Salary Expense and a credit of $19,000 to Cash.Indicate which of the preceding errors would require a correcting entry.

To Indicate: Whether each of the following error would cause the trial balance totals to be unequal,…

ollowing errors, each considered individually, wwould cau trial balance totals to be unequal: a, A fee of $21,000 earned and due from a client was no debited to Accounts Res or credited to a revenue account, because the cash had not been received. b. A receipt of $11,300 from an account receivable was journalized and posted a of $11,300 to Cash and a credit of $11,300 to Fees Earned. C. A payment of $4,950 to a creditor was posted as a debit of $4,950 to Acco able and a debit of $4,950 to Cash. d. A payment of $5,000 for equipment purchased was posted as a debit of $50 ment and a credit of $500 to Cash. e. Payment of a cash dividends of $19,000 was journalized and posted as $1,900 to Salary Expense and a credit of $19,000 to Cash. Indicate whích of the preceding errors would require a correcting entry.

ollowing errors, each considered individually, wwould cau trial balance totals to be unequal: a, A fee of $21,000 earned and due from a client was no debited to Accounts Res or credited to a revenue account, because the cash had not been received. b. A receipt of $11,300 from an account receivable was journalized and posted a of $11,300 to Cash and a credit of $11,300 to Fees Earned. C. A payment of $4,950 to a creditor was posted as a debit of $4,950 to Acco able and a debit of $4,950 to Cash. d. A payment of $5,000 for equipment purchased was posted as a debit of $50 ment and a credit of $500 to Cash. e. Payment of a cash dividends of $19,000 was journalized and posted as $1,900 to Salary Expense and a credit of $19,000 to Cash. Indicate whích of the preceding errors would require a correcting entry.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The trial balance before adjustment for Wildhorse Company shows the following balances. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue 1. 2 3. Dr. 4. $85,600 Using the data above, give the journal entries required to record each of the following cases. (Each situation is independent.) 2,940 Cr. $475,600 To obtain additional cash, Wildhorse factors without recourse $24,300 of accounts receivable with Stills Finance. The finance charge is 10% of the amount factored. To obtain a 1-year loan of $58,900, Wildhorse pledges $67,000 of specific receivable accounts to Crosby Financial. The finance charge is 8% of the loan; the cash is received and the accounts turned over to Crosby Financial. The company wants to maintain the Allowance for Doubtful Accounts at 5% of gross accounts receivable. Based on an aging analysis, an allowance of $5,577 should be reported. Assume the allowance has a credit balance of $1,181. (If no entry is required, select "No Entry" for the account…
ME11Which of the following errors, each considered individually, would cause the trial balance totals to be unequal?a) A payment of $488 to a creditor was posted as a debit of $848 to Accounts Payable and a debit of $488 to Accounts Receivable.b) Cash received from customers on account was posted as a debit of $450 to Cash and a credit of $450 to Accounts Payable.c) A payment of $79 for supplies was posted as a debit of $907 to Supplies and a credit of $907 to Cash.d) A transaction was not posted.
Flora Co. uses the allowance method of accounting for uncollectible accounts receivable. The entry to write off an account that has been determined to be uncollectible would be to debit a. Allowance for Doubtful Accounts and credit Accounts Receivable. Ob. Sales Returns and Allowances and credit Accounts Receivable. c. Accounts Receivable and credit Bad Debt Expense. Od. Bad Debt Expense and credit Allowance for Doubtful Accounts.
Bidiyah Co. estimates that RO 6,500 of its accounts receivable to be uncollectible. If Allowance for Doubtful Accounts has a RO 1,200 debit balance, the company should record a: Select one: O a. None of the answers are correct O b. debit to Bad Debt Expense for RO 5,300. O c credit to Allowance for Doubtful Accounts for RO 6,500. Od. debit to Allowance for Doubtful Accounts for RO 5,300. O e. credit to Bad Debt Expense for RO 7,700.
Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases and indicate the ending balance in each case. a. Credit balance of $400 in Allowance for Doubtful Accounts just prior to adjustment. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $8,710. Line Item Description Amount Amount added $fill in the blank 1 Ending balance $fill in the blank 2 b. Credit balance of $400 in Allowance for Doubtful Accounts just prior to adjustment. Bad debt expense is estimated at 2% of credit sales, which totaled $973,000 for the year. Line Item Description Amount Amount added $fill in the blank 3 Ending balance $fill in the blank 4
The Colby Group has the following unadjusted trial balance as of August 31, 2019: The Colby Group Unadjusted Trial Balance August 31, 2019 Credit Balances Debit Balances Cash 17,300 37,000 7,400 Accounts Receivable Supplies Prepaid Insurance Equipment.. Notes Payable.. Accounts Payable Terry Colby, Capital.. Terry Colby, Drawing 1,900 196,000 97,600 26,000 129,150 56,000 Fees Earned.. 454,450 Wages Expense Rent Expense Advertising Expense.. Miscellaneous Expense 270,000 51,800 25,200 5,100 667,700 707,200
TRUE or FALSE 3. All allowances to customers for returned or defective merchandise should be supported by serially numbered credit memo signed by an officer or responsible employee having no duties relating to handling cash or the maintenance of customers' ledgers. 4. The auditors should perform alternative auditing procedures on all negative confirmation requests that are not returned. 5. When it is "impossible" to confirm accounts receivable, the auditors can never issue an unqualified oinion, on the client's financial statements. 6. Inspection of notes receivable on hand should be performed concurrently with the count of cash and securities to prevent the concealment of a shortage by substitution of cash for misappropriated negotiable instruments, or vice versa. 7. A confirmation is considered documentary evidence secured from outside the organization and sent directly to the auditors. 8. The auditor needs the client's permission to send out "confirmations" 9. A customer's response…
tutuis Were: DEBIT CREDIT $387,642 $379,511 A suspense account was opened for the difference. Which one of the following errors would have the effect of reducing the difference when corrected? The petty cash balance of $500 has been omitted from the trial balance. B $4,000 received for rent of part of the office has been correctly recorded in the cash book and debited to rent account. C $3,000 paid for repairs to plant has been debited to the plant asset account. D An invoice for Mr A Smith for $400 has been posted to the account of Mrs B Smith in error.
In maintaining the accounts receivable, the method that applies a customer’s payment to the account balance without consideration of which unpaid invoices the customer is paying is: TurnaroundOpen-invoice Balance-forwardCycle billingMatching
Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases and indicate the ending balance in each case. a. Credit balance of $460 in Allowance for Doubtful Accounts just prior to adjustment. Analysis of Accounts Receivable indicates uncollectible receivables of $7,040. Amount added Ending balance b. Credit balance of $460 in Allowance for Doubtful Accounts just prior to adjustment. Uncollectible receivables are estimated at 3% of credit sales, which totaled $1,009,000 for the year. Amount added Ending balance
A credit sales of RM5,000 to Rima was credited to the Sales Account, but wrongly debited in Rama account (a debtor). What is the type of error made? Error of original entry Error of commission Compensating error Error of omission
If a $335.00 debit item in the general journal is posted as a credit: By how much will the trial balance be out of balance? Explain how you might detect such an error.