Question five: Rectify the following errors: 1. Other income received of Tshs880,000 was correctly recorded in the cash book, but was debited to the other income account. 2. Cash paid for wages of Tshs9.6 million was posted to the wages account as Tshs6.9 million. 3. The purchases day book was overcast by Tshs2 million. 4. The sales day book was undercast by Tshs6 million. 5. The cash book credit side was undercast by Tshsl.3 million. 6. The prepaid expense account debit side was undercast by Tshs0.6 million. 7. A sale of Tshsl.5 million was fully credited to the sales account. However, sales tax of Tshs0.5 million was included in it. 8. A building purchased for Tshs60 million was entered in the building account as Tshs50 million. The company charges 2% depreciation. 9. Repairs to machinery of Tshs5 million were capitalised and a depreciation of 5% was charged on it.

Question five: Rectify the following errors: 1. Other income received of Tshs880,000 was correctly recorded in the cash book, but was debited to the other income account. 2. Cash paid for wages of Tshs9.6 million was posted to the wages account as Tshs6.9 million. 3. The purchases day book was overcast by Tshs2 million. 4. The sales day book was undercast by Tshs6 million. 5. The cash book credit side was undercast by Tshsl.3 million. 6. The prepaid expense account debit side was undercast by Tshs0.6 million. 7. A sale of Tshsl.5 million was fully credited to the sales account. However, sales tax of Tshs0.5 million was included in it. 8. A building purchased for Tshs60 million was entered in the building account as Tshs50 million. The company charges 2% depreciation. 9. Repairs to machinery of Tshs5 million were capitalised and a depreciation of 5% was charged on it.

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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Ryan has a suspense account with a debit balance of $740. Upon investigation, the following discrepancies were found: (i) Discounts unexpectedly taken by customers of $229 have only been entered in the receivables control account (ii) Cash sales of $820 has not been recorded to the sales account, the cash has been debited to cash at bank (iii)Bank interest received of $54 has been debited to the interest income account and credited to the cash account. What is the balance on the suspense account after the errors have been corrected? DR or CR?
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At year-end, a trial balance showed total credits exceeding total debits by $6,200. This difference could have been caused by: O Multiple Choice An error in the general journal where a $6,200 increase in Accounts Receivable was recorded as an increase in Cash. A net income of $6,200. The balance of $62,000 in Accounts Payable being mistakenly entered in the trial balance as $6,200. The balance of $7,000 in the Office Equipment account being mistakenly entered on the trial balance as a debit of $800. An error in the general journal where a $6,200 increase in Accounts Payable was mistakenly recorded as a decrease in Accounts Payable.
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Entry for Uncollectible Accounts Sun Valley Rides is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31, 20Y3, and a historical analysis of the percentage of uncollectible accounts in each age category are as follows: Age Interval Balance Percent Uncollectible Not past due $2,025,000 3 % 1-30 days past due 900,000 2 31-60 days past due 135,000 61-90 days past due 60,000 18 91-180 days past due 30,000 52 Over 180 days past due 15,000 82 $3,165,000 Assume that the allowance for doubtful accounts for Sun Valley Rides had a negative balance of $(17,015) as of December 31, 20Y3. Illustrate the effects of the adjustment for uncollectible accounts as of December 31, 20Y3, on the accounts and financial statements. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts.
18.7 The trial balance of Z failed to agree, the totals being: DEBIT $836,200 CREDIT $819,700 A suspense account was opened for the amount of the difference and the following errors were found and corrected: The total of the cash discount received column in the cash book had not been posted to the discount received account. The figure for discounts received was $5,100. 1 2 A cheque for $19,000 received from a customer was correctly entered in the cash book but was posted to the control account as $9,100. What will the remaining balance be on the suspense after the correction of these errors? 2$ credit
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The following errors were detected: The cash balance is overstated by $5,000. Rent expense of $340 was erroneously posted as a credit rather than a debit. A $6,800 credit to Service revenue was not posted. A $400 debit to Accounts receivable was posted as $40. The balance of Utilities expense is understated by $70. A $900 purchase of supplies on account was neither journalized nor posted. Equipment should be $16,490. Requirement Prepare the corrected trial balance on February 29, 2020. JOURNAL ENTRIES ARE NOT REQUIRED. Prepare the company's financial statements for the month of February 2020. (Income statement, Statement of Owner’s Equity and the Balance Sheet)