The following information is obtained from a review of the record keeping process. Analyze the given information and prepare a modified trial balance. Show your solutions. Ricanor Accounting Services Trial Balance Dec. 31, 2021 Debit Credit Cash P189,000 Accounts Receivable 284,600 66,400 40,000 526,800 Supplies Prepaid Insurance Office Equipment Notes Payable Accounts Payable Ricanor, Capital Ricanor, Withdrawals Service Income P130,000 195,400 297,200 100,000 821,400 Salaries Expense Advertising Expense 348,700 12,200 P1,467.700 Totals P1.544.000 a. An account receivable for P 24,300 was incorrectly added as P 23,400 when computing the balance of the Accounts Receivable account. b. A debit posting from the journal for P5,200 is missing from the Salaries Expense account. c. A debit posting of P15,000 to Notes Payable should have been made to Accounts Payable. d. A debit posting of P25,000 to Supplies was incorrectly posted as P2,500. e. Credits to the ledger Accounts Payable account were under- footed by P60,000. f. Income is understated in the ledger account by P40,000. g. A credit posting of Service Income from the journal in the amount of P52,300 is missing. h. Office Equipment acquired in the amount of P17,400 have been incorrectly posted to the Supplies account.
The following information is obtained from a review of the record keeping process. Analyze the given information and prepare a modified trial balance. Show your solutions. Ricanor Accounting Services Trial Balance Dec. 31, 2021 Debit Credit Cash P189,000 Accounts Receivable 284,600 66,400 40,000 526,800 Supplies Prepaid Insurance Office Equipment Notes Payable Accounts Payable Ricanor, Capital Ricanor, Withdrawals Service Income P130,000 195,400 297,200 100,000 821,400 Salaries Expense Advertising Expense 348,700 12,200 P1,467.700 Totals P1.544.000 a. An account receivable for P 24,300 was incorrectly added as P 23,400 when computing the balance of the Accounts Receivable account. b. A debit posting from the journal for P5,200 is missing from the Salaries Expense account. c. A debit posting of P15,000 to Notes Payable should have been made to Accounts Payable. d. A debit posting of P25,000 to Supplies was incorrectly posted as P2,500. e. Credits to the ledger Accounts Payable account were under- footed by P60,000. f. Income is understated in the ledger account by P40,000. g. A credit posting of Service Income from the journal in the amount of P52,300 is missing. h. Office Equipment acquired in the amount of P17,400 have been incorrectly posted to the Supplies account.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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PLEASE NOTE THAT ALL THE LETTERS IN THE PICTURE MUST BE ANSWERED, TYSM
Transcribed Image Text:The following information is obtained from a review of the record keeping process. Analyze the given
information and prepare a modified trial balance. Show your solutions.
Ricanor Accounting Services
Trial Balance
Dec. 31, 2021
Debit
Credit
P189,000
284,600
66,400
40,000
526,800
Cash
Accounts Receivable
Supplies
Prepaid Insurance
Office Equipment
Notes Payable
Accounts Payable
Ricanor, Capital
Ricanor, Withdrawals
P130,000
195,400
297,200
100,000
Service Income
821,400
348,700
12,200
P1,467,700
Salaries Expense
Advertising Expense
Totals
P1,544.000
a. An account receivable for P 24,300 was incorrectly added as P 23,400 when computing the
balance of the Accounts Receivable account.
b. A debit posting from the journal for P5,200 is missing from the Salaries Expense account.
C. A debit posting of P15,000 to Notes Payable should have been made to Accounts Payable.
d. A debit posting of P25,000 to Supplies was incorrectly posted as P2,500.
e. Credits to the ledger Accounts Payable account were under- footed by P60,000.
f. Income is understated in the ledger account by P40,000.
g. A credit posting of Service Income from the journal in the amount of P52,300 is missing.
h. Office Equipment acquired in the amount of P17,400 have been incorrectly posted to the
Supplies account.
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