27th Edition

ISBN: 9781337272094

Author: WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher: Cengage Learning,

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Textbook Question

Chapter 2, Problem 2.18EX

Errors in trial balance

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
Accounts Receivable	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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Chapter 2, Problem 2.17EX

Chapter 2, Problem 2.19EX

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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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