Working Papers for Warren/Reeve/Duchac's Corporate Financial Accounting, 14th
14th Edition
ISBN: 9781305878839
Author: Carl Warren, Jonathan Duchac, James M. Reeve
Publisher: Cengage Learning
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Textbook Question
Chapter 2, Problem 2.5BPR
Corrected
Tech Support Services has the following unadjusted trial balance as of January 31, 2018:
Tech Support Services Unadjusted Trial Balance January 31, 2018 | ||
Debit Balances | Credit Balances | |
Cash | 25,550 | |
44,050 | ||
Supplies | 6,660 | |
Prepaid Insurance | 3,600 | |
Equipment | 162,000 | |
Notes Payable | 75,000 | |
Accounts Payable | 13,200 | |
Common Stock | 18,000 | |
83,850 | ||
Dividends | 33,000 | |
Fees Earned | 534,000 | |
Wages Expense | 306,000 | |
Rent Expense | 62,550 | |
Advertising Expense | 23,850 | |
Gas, Electricity, and Water Expense | 17,000 | |
684,260 | 724,050 |
The debit and credit totals are not equal as a result of the following errors:
- A. The cash entered on the trial balance was overstated by $8,000.
- B. A cash receipt of $4,100 was posted as a debit to Cash of $ 1,400.
- C. A debit of $ 12,350 to Accounts Receivable was not posted.
- D. A return of $235 of defective supplies was erroneously posted as a $325 credit to Supplies.
- E. An insurance poky acquired at a cost of $3,000 was posted as a credit to Prepaid Insurance.
- F. The balance of Notes Payable was overstated by $21,000.
- G. A credit of $3,450 in Accounts Payable was overlooked when the balance of the account was determined.
- H. A debit of $6,000 for dividends was posted as a debit to Retained Earnings.
- I. The balance of $28,350 in Advertising Expense was entered as $23,850 in the trial balance.
- J. Miscellaneous Expense, with a balance of $4,600, was omitted from the trial balance.
Instructions
- 1. Prepare a corrected unadjusted trial balance as of January 31, 2018.
- 2. Does the fact that the unadjusted (trial balance in (1) is balanced mean that there are no errors in the accounts? Explain.
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Chapter 2 Solutions
Working Papers for Warren/Reeve/Duchac's Corporate Financial Accounting, 14th
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