TRIAL BALNCE AS AT 30TH JUNE, 2022 Grimault, a sole trader, has extracted the following list of balances as at 30 June 2022 from his accounts prior to the preparation of the annual accounts and statement of financial position. Fixtures and fittings Motor Vehicles Inventories Trade Receivables Bank Trades Payables Sales Purchases Administrative Expenses Sales and distribution expenses Drawings Capital Suspense The following errors have been discovered: 1) 2) 3) Required: 1) 2) DR Prepare journal entries for the errors discovered Prepare a new balance showing the corrected accounts $ 7500 6000 18000 10800 2550 118800 17700 50250 14550 7200 Goods costing $900 withdrawn by Grimault for his own use have not been recorded in the accounts. This should be treated as a reduction in figure for purchases A purchase of fixtures and Fittings on the 1st April, 2022 costing $6,750 by cheque was recorded only in the Bank Account. A credit sale of $7,500 in May 2022 was included correctly in the posting to the sales account, Recorded a $7050 in the receivables account. CR $ 10350 19800 45000 253350 253350

TRIAL BALNCE AS AT 30TH JUNE, 2022 Grimault, a sole trader, has extracted the following list of balances as at 30 June 2022 from his accounts prior to the preparation of the annual accounts and statement of financial position. Fixtures and fittings Motor Vehicles Inventories Trade Receivables Bank Trades Payables Sales Purchases Administrative Expenses Sales and distribution expenses Drawings Capital Suspense The following errors have been discovered: 1) 2) 3) Required: 1) 2) DR Prepare journal entries for the errors discovered Prepare a new balance showing the corrected accounts $ 7500 6000 18000 10800 2550 118800 17700 50250 14550 7200 Goods costing $900 withdrawn by Grimault for his own use have not been recorded in the accounts. This should be treated as a reduction in figure for purchases A purchase of fixtures and Fittings on the 1st April, 2022 costing $6,750 by cheque was recorded only in the Bank Account. A credit sale of $7,500 in May 2022 was included correctly in the posting to the sales account, Recorded a $7050 in the receivables account. CR $ 10350 19800 45000 253350 253350

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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1. Prepare an income statement for 2021 and 2022 for the company.
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3
Problem 1: Prepare a classified balance sheet for Sandpiper Corporation as of December 31, 2019 using columns 2 and 3 of the accounting paper supplied. Parenthetically show common shares authorized, issued, and outstanding. Use pencil only, place the units, tens, hundreds, thousands, etc. in the proper mini column, and leave the pennies blank. No commas are necessary when you use the accounting paper properly. Dollars signs used at the top of the column and after a total line. Use columns 2 for detail and column 3 for netting, totals, and grand totals. Leave column 1 and 4 blank. This balance sheet balances with these numbers. Bracketed notes are for the preparer and parathetical notes are for the reader of the financials. You are the preparer. Accounts Payable 13,580 47,280 15,740 1,595 Accounts Receivable Accumulated Depreciation Allowance for Doubtful Accounts Bonds Payable Cash and Cash Equivalents Common Stock at par $2 (authorized 100,000 shares, issued xxXXx shares, and XXXX…
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