Corporate Financial Accounting
15th Edition
ISBN: 9781337670517
Author: WARREN
Publisher: Cengage
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Chapter 2, Problem 2.20EX
Errors in
Identify the errors in the following trial balance. All accounts have normal balances.
| Ensemble Co. Unadjusted Trial Balance For the Year Ending December 31, 20Y8 |
||
| Debit Balances |
Credit Balances |
|
| Cash |
42,900 |
|
| |
123,500 |
|
| Prepaid Insurance | 27,000 | |
| Equipment | 300,000 | |
| Accounts Payable |
52,000 | 4,800 |
| Salaries Payable | ||
| Common Stock | 40,000 | |
| 137,200 | ||
| Dividends | 5,000 | |
| Service Revenue | 1,216,000 | |
| Salary Expense | 660,000 | |
| Advertising Expense | 275,000 | |
| Miscellaneous Expense | 16,600 | |
| 1,801,500 | 1,801,500 | |
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The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31:
June 8. Wrote off account of Kathy Quantel, $8,150.
Aug. 14. Received $5,790 as partial payment on the $14,590 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible.
Oct. 16. Received the $8,150 from Kathy Quantel, whose account had been written off on June 8. Reinstated the account and recorded the cash
receipt.
Dec. 31. Wrote off the following accounts as uncollectible (record as one journal entry):
Wade Dolan
$2,360
Greg Gagne
1,470
Amber Kisko
5,620
Shannon Poole
3,260
Niki Spence
900
Dec. 31.
If necessary, record the year-end adjusting entry for uncollectible accounts.
If no entry is required, select "No entry" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank.
a. Journalize the transactions under the direct write-off method.
June 8 Bad Debt Expense
Accounts Receivable-Kathy Quantel
Aug. 14 Cash…
The following summarizes the aging of accounts receivable for Orange Incorporated as of July 31, Year 1:
Number of Days
Unpaid
Not yet due
1 to 30 days past
due
31 to 60 days
past due
Over 60 days
past due
Total
Accounts
Receivable
11.130
$ 175,982
89,200
53,600
31,800
Historical % Uncollectible
17,424 margin of error +/-3
www.
29
12%
18%
The unadjusted balance of the Allowance for Doubtful Accounts of Orange Incorporated is a credit balance in the amount of
$17.578 on July 31, Year 1. What is the amount of the adjusting entry to be recorded on July 31 Year 17
35%
Chapter 2 Solutions
Corporate Financial Accounting
Ch. 2 - What is the difference between an account and a...Ch. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - eCatalog Services Company performed services in...Ch. 2 - If the two totals of a trial balance are equal,...Ch. 2 - Assume that a trial balance is prepared with an...Ch. 2 - Assume that when a purchase of supplies of 2,650...Ch. 2 - Assume that Muscular Consulting erroneously...Ch. 2 - Assume that Sunshine Realty Co. borrowed 300,000...Ch. 2 - Checking accounts are one of the most common forms...
Ch. 2 - Rules of debit and credit and normal balances...Ch. 2 - Journal entry for asset purchase Prepare a journal...Ch. 2 - Journal entry for fees earned Prepare a journal...Ch. 2 - Journal entry for dividends Prepare a journal...Ch. 2 - Missing amount from an account On August 1, the...Ch. 2 - Trial balance errors For each of the following...Ch. 2 - Correcting entries The following errors took place...Ch. 2 - Horizontal analysis Two income statements for...Ch. 2 - Prob. 2.1EXCh. 2 - Chart of accounts Innerscape Interiors is owned...Ch. 2 - Chart of accounts LeadCo School is a newly...Ch. 2 - Rules of debit and credit The following table...Ch. 2 - Normal entries for accounts During the month,...Ch. 2 - Normal balances of accounts Identify each of the...Ch. 2 - Transactions Innovative Consulting Co. has the...Ch. 2 - Journalizing and posting On February 11, 20Y9,...Ch. 2 - Transactions and T accounts The following selected...Ch. 2 - Cash account balance During the month, Bavarian...Ch. 2 - Account balances A. During February, 186,500 was...Ch. 2 - Retained earnings account balance As of January 1,...Ch. 2 - Identifying transactions Rocky Mountain Tours Co....Ch. 2 - Journal entries Based upon the T accounts in...Ch. 2 - Trial balance Based upon the data presented in...Ch. 2 - Trial balance The accounts in the ledger of...Ch. 2 - Effect of errors on trial balance Indicate which...Ch. 2 - Total of Credit column: 525,000 Error in triad...Ch. 2 - Effect of errors on trial balance The following...Ch. 2 - Errors in trial balance Identify the errors in the...Ch. 2 - Entries to correct errors The following errors...Ch. 2 - Entries to correct errors The following errors...Ch. 2 - Entries into T accounts and trial balance Marjorie...Ch. 2 - Journal entries and trial balance On October 1,...Ch. 2 - Journal entries and trial balance On November...Ch. 2 - Journal entries and trial balance Elite Realty...Ch. 2 - Corrected trial balance The Lexington Group has...Ch. 2 - Entries into T accounts and trial balance Ken...Ch. 2 - Journal entries and trial balance On August 1,...Ch. 2 - Journal entries and trial balance On October 1,...Ch. 2 - Journal entries and trial balance Valley Realty...Ch. 2 - Corrected trial balance Tech Support Services has...Ch. 2 - Continuing Problem 4.Total of Debit column: 40,750...Ch. 2 - Analyze Amazon.com Amazon.com, Inc. (AMZN) is the...Ch. 2 - Prob. 2.2MADCh. 2 - Analyze Vera Bradley. Inc. Vera Bradley, Inc....Ch. 2 - Analyze Target The following data (in millions)...Ch. 2 - Prob. 2.5MADCh. 2 - Prob. 2.6MADCh. 2 - Prob. 2.1TIFCh. 2 - Prob. 2.4TIFCh. 2 - Record transactions The following discussion took...
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