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The trial balance for Finders Company does not bala and the information as follows has been presented: Finders Company Trial Balance

The trial balance for Finders Company does not bala and the information as follows has been presented: Finders Company Trial Balance

FINANCIAL ACCOUNTING
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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Please explain why rent expense should be debited twice on trial balance

 

The trial balance for Finders Company does not balance and the information as follows has been presented: Finders Company Trial Balance February 29, 2020 Debit Account Cash Accounts receivable Supplies Equipment Computers Accounts payabie Notes payable Wright, Capital Wright, Drawing Service revenue Credit 6,300 6,000 400 22,300 49,000 2,800 18,500 50,000 4,000 4,100 Salary Expense Rent expense Advertising expense Utilities expense Total 1,400 800 900 800 91,900 75,400 The following errors were detected: 1. The cash balance is overstated by $5,000. 2. Rent expense of $340 was erroneously posted as a credit rather than a debit. 3. A $6,800 credit to Service revenue was not posted. 4. A $400 debit to Accounts receivable was posted as $40. 5. The balance of Utilities expense is understated by $70. 6. A $900 purchase of supplies on account was neither journalized nor posted. 7. Equipment should be $16,490.
Transcribed Image Text:The trial balance for Finders Company does not balance and the information as follows has been presented: Finders Company Trial Balance February 29, 2020 Debit Account Cash Accounts receivable Supplies Equipment Computers Accounts payabie Notes payable Wright, Capital Wright, Drawing Service revenue Credit 6,300 6,000 400 22,300 49,000 2,800 18,500 50,000 4,000 4,100 Salary Expense Rent expense Advertising expense Utilities expense Total 1,400 800 900 800 91,900 75,400 The following errors were detected: 1. The cash balance is overstated by $5,000. 2. Rent expense of $340 was erroneously posted as a credit rather than a debit. 3. A $6,800 credit to Service revenue was not posted. 4. A $400 debit to Accounts receivable was posted as $40. 5. The balance of Utilities expense is understated by $70. 6. A $900 purchase of supplies on account was neither journalized nor posted. 7. Equipment should be $16,490.
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