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The Colby Group has the following unadjusted trial balance as of August 31, 2019: The Colby Group Unadjusted Trial Balance August 31, 2019 Debit Credit Balances Balances Cash.... 17,300 Accounts Receivable... 37,000 Supplies.... Prepaid Insurance Equipment..... Notes Payable.... 7,400 1,900 196,000 97,600 Accounts Payable .. Terry Colby, Capital... Terry Colby, Drawing 26,000 129,150 56,000 Fees Earned..... 454,450 Wages Expense Rent Expense Advertising Expense... Miscellaneous Expense 270,000 51,800 25,200 5,100 707,200 667,700 The debit and credit totals are not equal as a result of thee 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 the trial balance Instructions 1. Prepare a corrected unadjusted trial balance as of August 31, 2019. 2 there are no errors in the accounts? Explain Does the fact that the unadjusted trial balance in (1) is balanced mean that

The Colby Group has the following unadjusted trial balance as of August 31, 2019: The Colby Group Unadjusted Trial Balance August 31, 2019 Debit Credit Balances Balances Cash.... 17,300 Accounts Receivable... 37,000 Supplies.... Prepaid Insurance Equipment..... Notes Payable.... 7,400 1,900 196,000 97,600 Accounts Payable .. Terry Colby, Capital... Terry Colby, Drawing 26,000 129,150 56,000 Fees Earned..... 454,450 Wages Expense Rent Expense Advertising Expense... Miscellaneous Expense 270,000 51,800 25,200 5,100 707,200 667,700 The debit and credit totals are not equal as a result of thee 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 the trial balance Instructions 1. Prepare a corrected unadjusted trial balance as of August 31, 2019. 2 there are no errors in the accounts? Explain Does the fact that the unadjusted trial balance in (1) is balanced mean that

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 Colby Group has the following unadjusted trial balance as of August 31, 2019: The Colby Group Unadjusted Trial Balance August 31, 2019 Debit Credit Balances Balances Cash.... 17,300 Accounts Receivable... 37,000 Supplies.... Prepaid Insurance Equipment..... Notes Payable.... 7,400 1,900 196,000 97,600 Accounts Payable .. Terry Colby, Capital... Terry Colby, Drawing 26,000 129,150 56,000 Fees Earned..... 454,450 Wages Expense Rent Expense Advertising Expense... Miscellaneous Expense 270,000 51,800 25,200 5,100 707,200 667,700
Transcribed Image Text:The Colby Group has the following unadjusted trial balance as of August 31, 2019: The Colby Group Unadjusted Trial Balance August 31, 2019 Debit Credit Balances Balances Cash.... 17,300 Accounts Receivable... 37,000 Supplies.... Prepaid Insurance Equipment..... Notes Payable.... 7,400 1,900 196,000 97,600 Accounts Payable .. Terry Colby, Capital... Terry Colby, Drawing 26,000 129,150 56,000 Fees Earned..... 454,450 Wages Expense Rent Expense Advertising Expense... Miscellaneous Expense 270,000 51,800 25,200 5,100 707,200 667,700
The debit and credit totals are not equal as a result of thee 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 the trial balance Instructions 1. Prepare a corrected unadjusted trial balance as of August 31, 2019. 2 there are no errors in the accounts? Explain Does the fact that the unadjusted trial balance in (1) is balanced mean that
Transcribed Image Text:The debit and credit totals are not equal as a result of thee 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 the trial balance Instructions 1. Prepare a corrected unadjusted trial balance as of August 31, 2019. 2 there are no errors in the accounts? Explain Does the fact that the unadjusted trial balance in (1) is balanced mean that
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