Requirement – 1 Explanation Trial balance: Trial balance is the summary of accounts, and their debit and credit balances at a given time. It is usually prepared at end of the accounting period. Debit balances are listed in left column and credit balances are listed in right column. The totals of debit and credit column should be equal. Trial balance is useful in the preparation of the financial statements. Errors: An error is a mistake committed in the process of book-keeping or in accounting. In some cases, errors may occur but, they will not affect the totals of the trial balance. Such an error can be found while preparing the trial balance or would be indicated by the unusual account balance. Trial balance of Company J is as follows: Company J Trial Balance October 31, 2013 Accounts Debit ($) Credit ($) Cash 4,100 Accounts receivable 7,300 Land 31,700 Accounts payable 6,700 Note payable 5,400 Common stock 23,900 Retained earnings 1,200 Service revenue 9,800 Salary expense 2,500 Advertising expense 1,200 _______ Total 46,800 47,000 Table (1) In this case, the total of debit, and credit columns of a trial balance does not balanced... Requirement – 2 To determine The amount of (a) total assets, (b) total liabilities and (c) net income or loss after rectifying the error.

MyLab Accounting with Pearson eText -- Access Card -- for Financial Accounting

12th Edition

ISBN: 9780134727677

Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.

Publisher: PEARSON

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Chapter 2, Problem 2.69CEP

Requirement – 1

To determine

To prepare: The trial balance of Company J as of October 31, 2018.

Requirement – 2

To determine

The amount of (a) total assets, (b) total liabilities and (c) net income or loss after rectifying the error.

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Chapter 2, Problem 2.68CEP

Chapter 2, Problem 2.70CEP

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The trial balance of Dunn Service Center, Inc., on March 1, 2018, lists the entity’s assets, liabilities, and stockholders’ equity on that date.Account Title Debit CreditCash.......................................Accounts receivable................Accounts payable ...................Common stock.......................Retained earnings...................Total ......................................$26,0004,500$30,500$ 2,00010,00018,500$30,500BalanceDuring March, the business completed the following transactions:a. Borrowed $45,000 from the bank, with Dunn signing a note payable in the name of thebusiness.b. Paid cash of $40,000 to a real estate company to acquire land.c. Performed a service for a customer and received cash of $5,000.d. Purchased supplies on credit, $300.e. Performed a service for a customer and earned $2,600 of revenue on account.f. Paid $1,200 on account.g. Paid the following cash expenses: salaries, $3,000; rent, $1,500; and interest, $400.h. Received $3,100 on…

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MyLab Accounting with Pearson eText -- Access Card -- for Financial Accounting

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The trial balance of Company J as of October 31, 2018.

Solution Summary: The author explains that trial balance is the summary of accounts, and their debit and credit balances at a given time. Errors occur in the process of book-keeping or in accounting.