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The trial balance of Jacksons Pet shop as at 30 April 2021 was balanced with the inclusion of the following debit balance: Debit balance to the suspense account $9,000. Subsequent investigations revealed the following errors: 1) Discounts received of $750 have been posted to the debit of the discounts allowed account. 2) Wages of $7,200 paid in February 2021 by cheque have been posted to the wages account only. 3) Goods that were purchased on credit from L. Banks $3,750 was recorded in the purchases account as $750. 4) Sales on credit to a customer, J Riley $9,600 was omitted from the customer's account. 5) A payment of $2,550 to D Whyte in January 2021 has been posted to the customers account as a credit. 6) A payment to a supplier, A Black $143 by cheque was recorded in both accounts as $413. REQUIRED: a) Prepare the journal entries to correct the above errors b) Prepare the suspense account as it would appear after all the errors have been corrected.

The trial balance of Jacksons Pet shop as at 30 April 2021 was balanced with the inclusion of the following debit balance: Debit balance to the suspense account $9,000. Subsequent investigations revealed the following errors: 1) Discounts received of $750 have been posted to the debit of the discounts allowed account. 2) Wages of $7,200 paid in February 2021 by cheque have been posted to the wages account only. 3) Goods that were purchased on credit from L. Banks $3,750 was recorded in the purchases account as $750. 4) Sales on credit to a customer, J Riley $9,600 was omitted from the customer's account. 5) A payment of $2,550 to D Whyte in January 2021 has been posted to the customers account as a credit. 6) A payment to a supplier, A Black $143 by cheque was recorded in both accounts as $413. REQUIRED: a) Prepare the journal entries to correct the above errors b) Prepare the suspense account as it would appear after all the errors have been corrected.

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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The trial balance of Jacksons Pet shop as at 30 April 2021 was balanced with the inclusion of the following debit balance: Debit balance to the suspense account $9,000. Subsequent investigations revealed the following errors: 1) Discounts received of $750 have been posted to the debit of the discounts allowed account. 2) Wages of $7,200 paid in February 2021 by cheque have been posted to the wages account only. 3) Goods that were purchased on credit from L. Banks $3,750 was recorded in the purchases account as $750. 4) Sales on credit to a customer, J Riley $9,600 was omitted from the customer's account. 5) A payment of $2,550 to D Whyte in January 2021 has been posted to the customers account as a credit. 6) A payment to a supplier, A Black $143 by cheque was recorded in both accounts as $413. REQUIRED: a) Prepare the journal entries to correct the above errors b) Prepare the suspense account as it would appear after all the errors have been corrected.
Transcribed Image Text:The trial balance of Jacksons Pet shop as at 30 April 2021 was balanced with the inclusion of the following debit balance: Debit balance to the suspense account $9,000. Subsequent investigations revealed the following errors: 1) Discounts received of $750 have been posted to the debit of the discounts allowed account. 2) Wages of $7,200 paid in February 2021 by cheque have been posted to the wages account only. 3) Goods that were purchased on credit from L. Banks $3,750 was recorded in the purchases account as $750. 4) Sales on credit to a customer, J Riley $9,600 was omitted from the customer's account. 5) A payment of $2,550 to D Whyte in January 2021 has been posted to the customers account as a credit. 6) A payment to a supplier, A Black $143 by cheque was recorded in both accounts as $413. REQUIRED: a) Prepare the journal entries to correct the above errors b) Prepare the suspense account as it would appear after all the errors have been corrected.
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