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.

Financial Accounting Plus MyLab Accounting with Pearson eText -- Access Card Package (12th Edition)

12th Edition

ISBN: 9780134833132

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

Publisher: PEARSON

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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business…

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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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(Learning Objective 5: Correct errors and prepare a trial balance) The trial balance of Addison, Inc., at September 30, 2018, does not balance:Cash...................................... $ 14,10012,70016,90080059,0002,0001,000300$106,800Accounts receivable...............Inventory...............................Supplies.................................Land......................................Accounts payable ..................Common stock......................Sales revenue .........................Salary expense.......................Rent expense .........................Utilities expense ....................Total .....................................$12,30047,10049,700$109,100The accounting records hold the following errors:a. Recorded a $700 cash revenue transaction by debiting Accounts Receivable. The creditentry was correct.b. Posted a $1,000 credit to Accounts Payable as $100.c. Did not record utilities expense or the related account payable in the amount of $400.d. Understated…

Prepare the suitable accounts and find out the missing figure if any.Opening balance of debtors ..14,00,000Opening balance of bills receivable.................. 7,00,000Closing balance of bills receivable............... 3,50,000Cheque dishonoured....... 27,000Cash received from debtors............................ 10,75,000Cheque received and deposited in the bank............ 8,25,000Discount allowed............. 37,500Irrecoverable amount......... 17,500Returns inwards....... 28,000Bills receivable received from customers........ 1,05,000Bills receivable matured....... 2,80,000Bills discounted.......... 65,000Bills endorsed to creditors...... 70,000

The following changes took place during the year in Pavolik Company’s balance sheet accounts:Cash ................................... $5 D Accounts payable ............ $35 IAccounts receivable ........... $110 I Accrued liabilities ............ $4 DInventory ............................ $70 D Bonds payable ................ $150 IPrepaid expenses .............. $9 I Deferred income taxes .... $8 ILong-term investments ...... $6 D Common stock ................ $80 DPlant and equipment .......... $200 I Retained earnings ........... $54 IAccumulated depreciation .. $(60) ILand ................................... $15 DD Decrease; I Increase.Long-term investments that had cost the company $6 were sold during the year for $16, and land thathad cost $15 was sold for $9. In addition, the company declared and paid $30 in cash dividends during theyear. No sales or retirements of plant and equipment took place during the year.The company’s income statement for the year follows:Sales…

Chapter 2 Solutions

Financial Accounting Plus MyLab Accounting with Pearson eText -- Access Card Package (12th Edition)

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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.