Accounting
27th Edition
ISBN: 9780357155899
Author: Carl S. Warren; James M. Reeve; Jonathan Duchac
Publisher: Cengage Learning US
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Textbook Question
Chapter 2, Problem 2.18EX
Errors in
The following preliminary unadjusted trial balance of Ranger Co., a sports ticket agency, does not balance:
| Ranger co. unadjusted Trail Balance August 31, 2019 |
||
| Debit balances | Credit Balances | |
| Cash | 77,600 | |
| 37,750 | ||
| Prepaid insurance | 12,000 | |
| Equipment | 19,000 | |
| Accounts payable | 29,100 | |
| Unearned Rent | 10,800 | |
| Carmen Meeks, Capital | 110,000 | |
| Carmen Meeks, Drawing | 13,000 | |
| Fees Earned | 385,000 | |
| Wages Expense | 213,000 | |
| Advertising Expense | 16,350 | |
| Miscellaneous Expense | 18,400 | |
| 273,700 | 668,300 | |
When the ledger and other records are reviewed, you discover the following: (1) the debits and credits in the cash account total $77,600 and $62,100, respectively; (2) a billing of $9,000 to a customer on account was not posted to the accounts receivable account; (3) a payment of $4,500 made to a creditor on account was not posted to the accounts payable account; (4) the balance of the unearned rent account is $5,400; (5) the correct balance of the equipment account is $190,000; and (6) each account has a normal balance. Prepare a corrected unadjusted trial balance.
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The post-dosing trial balance as of April 30, 2019
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Journalize each of the May transactions using Kelly Consulling's clhar of accounts. (Do not Insert the account rumbers in the Post. Ref. colt
compound transaction, if an amount box does not require an entry, leave it blank,
May 3. Receved.cash fromn clients as an advance payrment for servies to be provided and recorded it as unearned fees, s1.500.
Post. Ref.
4,500
May 5: Received cash from dlients on account, $2,450.
Post. Ref.
Debit
2,450
May 9: Paid cash for a newspaper advertisement, $225.
Post. Ref.
Debit
DOOdODS日
May 13: Paid Office Station Co. for part of the debt incurred on April 5, $640.
Post. Ref.
Debit
640
May 15: Provided services on accournt for the period May 1-15, $9,180.
Description
Post. Ref.
Debit
9,180
9,180
May 16: Paid part-time receptionist for two weeks' salary induding the amount owed on April 30, $750.
Description
Post.…
Corrected trial balanceThe Colby Group has the following unadjusted trial balance as of August 31, 2019: The debit and credit totals are not equal as a result of the following errors:a. The cash entered on the trial balance was understated by $6,000.b. A cash receipt of $5,600 was posted as a debit to Cash of $6,500.c. A debit of $11,000 to Accounts Receivable was not posted.d. A return of $150 of defective supplies was erroneously posted as a $1,500 credit to Supplies.e. An insurance policy acquired at a cost of $1,200 was posted as a credit to Prepaid Insurance.f. The balance of Notes Payable was understated by $20,000.g. A credit of $4,800 in Accounts Payable was overlooked when determining the balance of the account.h. A debit of $7,000 for a withdrawal by the owner was posted as a credit to Terry Colby, Capital.i. The balance of $58,100 in Rent Expense was entered as $51,800 in the trial balance.j. Gas, Electricity, and Water Expense, with a balance of $24,150, was omitted from…
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Chapter 2 Solutions
Accounting
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