Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 2, Problem 5PA
The Colby Group has the following unadjusted
The debit and credit totals are not equal as a result of the 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.
Does the fact that the unadjusted trial balance in (1) is balanced mean that there are no errors in the accounts? Explain.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
The debit and credit totals are not equal as a result of the 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.Instructions1. Prepare a corrected unadjusted trial balance as of August 31, 2014.2. Does…
The Colby Group has the following unadjusted trial balance as of August 31, 2019:
The Colby Group
Unadjusted Trial Balance
August 31, 2019
Credit
Balances
Debit
Balances
Cash
17,300
37,000
7,400
Accounts Receivable
Supplies
Prepaid Insurance
Equipment..
Notes Payable..
Accounts Payable
Terry Colby, Capital..
Terry Colby, Drawing
1,900
196,000
97,600
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
667,700
707,200
The trial balance of the Sterling investigative Services shown next age does not balance. Your review of the general ledger reveals that each account has a normal balance. You also discovered the following errors. a. The totals of the debit sides of Rent Deposit, Accounts Payable, and Representation Expense were each understood to be P1,000. b. Transposition errors were made in Accounts Receivable and Service Revenue. Based on postings made, the correct balances were P25,700 and P69,600, respectively. c. Check payment for P9.400 was properly recorded, and the cash credit properly posted, but the accountant failed to post to the debit side of the taxes payable account. d. The trial balance shows some accounts are not on their proper sides. e. A cash debit posting for P5,000 was posted on the credit side. Credit P27,500 Sterling Investigative Services Trial Balance May 31, 2017 Debit Cash P55,800 Accounts Receivable Rent Deposit 7,000 Equipment 80,000 Accounts payable Taxes Payable…
Chapter 2 Solutions
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 a common form of deposits...
Ch. 2 - State for each account whether it is likely to...Ch. 2 - State for each account whether it is likely to...Ch. 2 - Prepare a journal entry for the purchase of office...Ch. 2 - Prob. 2PEBCh. 2 - Prepare a journal entry on April 30 for fees...Ch. 2 - Prepare a journal entry on August 13 for cash...Ch. 2 - Prepare a journal entry on December 23 for the...Ch. 2 - Prepare a journal entry on June 30 for the...Ch. 2 - Prob. 5PEACh. 2 - On August 1, the supplies account balance was...Ch. 2 - For each of the following errors, considered...Ch. 2 - For each of the following errors, considered...Ch. 2 - The following errors took place in journalizing...Ch. 2 - The following errors took place in journalizing...Ch. 2 - Prob. 8PEACh. 2 - Prob. 8PEBCh. 2 - The following accounts appeared in recent...Ch. 2 - Oak Interiors is owned and operated by Fred Biggs,...Ch. 2 - Outdoor Leadership School is a newly organized...Ch. 2 - The following table summarizes the rules of debit...Ch. 2 - During the month, Midwest Labs Co. has a...Ch. 2 - Identify each of the following accounts of...Ch. 2 - Concrete Consulting Co. has the following accounts...Ch. 2 - On September 18, 2019, Afton Company purchased...Ch. 2 - The following selected transactions were completed...Ch. 2 - During the month, Warwick Co. received 515,000 in...Ch. 2 - a. During February, 186,500 was paid to creditors...Ch. 2 - As of January 1, Terrace Waters, Capital had a...Ch. 2 - National Park Tours Co. is a travel agency. The...Ch. 2 - Based upon the T accounts in Exercise 2-13,...Ch. 2 - Based upon the data presented in Exercise 2-13,...Ch. 2 - The accounts in the ledger of Hickory Furniture...Ch. 2 - Indicate which of the following errors, each...Ch. 2 - The following preliminary unadjusted trial balance...Ch. 2 - The following errors occurred in posting from a...Ch. 2 - Identify the errors in the following trial...Ch. 2 - The following errors took place in journalizing...Ch. 2 - The following errors took place in journalizing...Ch. 2 - The following data (in millions) are taken from...Ch. 2 - The following data (in millions) were taken from...Ch. 2 - Connie Young, an architect, opened an office on...Ch. 2 - On January 1, 2019, Sharon Matthews established...Ch. 2 - On June 1, 2019, Kris Storey established an...Ch. 2 - Elite Realty acts as an agent in buying, selling,...Ch. 2 - The Colby Group has the following unadjusted trial...Ch. 2 - Ken Jones, an architect, opened an office on April...Ch. 2 - Prob. 2PBCh. 2 - On October 1, 2019, Jay Pryor established an...Ch. 2 - Valley Realty acts as an agent in buying, selling,...Ch. 2 - Tech Support Services has the following unadjusted...Ch. 2 - The transactions completed by PS Music during June...Ch. 2 - Buddy Dupree is the accounting manager for On-Time...Ch. 2 - Prob. 5CPCh. 2 - The following discussion took place between Tony...Ch. 2 - Prob. 7CP
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Tech Support Services has the following unadjusted trial balance as of January 31, 2019: 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 policy 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 a withdrawal by the owner was posted as a debit to Thad Engelberg, Capital. 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, 2019. 2. Does the fact that the unadjusted trial balance in (1) is balanced mean that there are no errors in the accounts? Explain.arrow_forwardRequired: Post the rectification entry for each of the above errors. Question five: Rectify the following errors: 1. Other income received of Tshs880,000 was correctly recorded in the cash book, but was debited to the other income account. 2. Cash paid for wages of Tshs9.6 million was posted to the wages account as Tshs6.9 million. 3. The purchases day book was overcast by Tshs2 million. 4. The sales day book was undercast by Tshs6 million. 5. The cash book credit side was undercast by Tshsl.3 million. 6. The prepaid expense account debit side was undercast by Tshs0.6 million. 7. A sale of Tshsl.5 million was fully credited to the sales account. However, sales tax of Tshs0.5 million was included in it. 8. A building purchased for Tshs60 million was entered in the building account as Tshs50 million. The company charges 2% depreciation. 9. Repairs to machinery of Tshs5 million were capitalised and a depreciation of 5% was charged on it. Question six: How much will appear in the suspense…arrow_forwardwhat is the solution for The credit total of a trial balance exceeds the debit total by P350. In investigating the cause of the difference, the following errors were determined:a credit to accounts receivable of P550 was not posted;a P5,000 debit to be made to the Purchases account was debited to Accounts payable instead;a P3,000 credit to be made to the Sales account was credited to the Accounts receivable account instead;the Interest payable account balance of P4,500 was included in the trial balance as P5,400.The correct balance of the trial balance isarrow_forward
- Which of the following errors would not affect net income?A. Post-dated checks are classified as cash upon receipt from customersB. Purchases on account are unrecorded because the goods are still in transit : butthe goods were included in inventoryC. Depreciation expense was recorded twice for the same yearD. The client charged an ordinary repair as part of equipment cost.arrow_forwardOne company has estimated that $3150 of its accounts receiable will be uncollectible. If allownace for doubtful accounts already has a credit balance of $1102, and the percentage of receivables method is used, it sadjustment to recrod for the period will require a debit to what for what amount?arrow_forwardThe balance on the receivables ledger control account of Robin & Co on 30 September amounted to $3,800 which did not agree with the net total of the list of receivables ledger balances at that date. Errors were found and the appropriate adjustments, when made, balanced the books. The items were as follows: (1) Debit balances in the receivables ledger, amounting to $103, had been omitted from the list of balances. (2) An irrecoverable debt amounting to $400 had been written off in the receivables ledger but had not been posted to the irrecoverable debts expense account or entered in the control account. An item of goods sold to Sparrow, $250, had been entered once in the sales day book but posted to his account twice. (4) $25 discount allowed to Wren had been correctly recorded and posted in the books. This sum had been subsequently disallowed, debited to Wren's account, and entered in the discount received column of the cash book. (5) No entry had been made in the control account in…arrow_forward
- Blackhorse Productions, Incorporated, used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $22,350. The account had an unadjusted credit balance of $11,300 at that time. a. The appropriate bad debt adjustment was recorded. b. Later, an account receivable for $2,300 was determined to be uncollectible and was written off. Required: For each transaction listed above, indicate the amount and direction (+ for increase or - for decrease) of effects on the financial statement accounts and on the overall accounting equation. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign.) Assets Allowance for Doubtful Accounts Allowance for Doubtful Accounts a. b. b. Accounts Receivable 9,250 X = 1,100 X = (1,100) X = > Answer is complete but not entirely correct. Liabilities + + + + Bad Debt Expense Stockholders' Equity 9,250 Xarrow_forwardThe trial balance of Kelvin does not balance. Which TWO of the following errors could explain this, assuming that Kelvin maintains control accounts for its receivables and payables within the double entry system? (1) The sales day book was undercast by $100.(2) Discounts received were credited to sales revenue account.(3) An opening accrual was omitted from the rent account.(4) The debit side of the cash account was undercast. A (1) and (2)B (2) and (3)C (3) and (4)D (1) and (4) Please give solution with proper explanationarrow_forwardThe total of a list of balances in Patricia Co’s receivables ledger was $643,700 on 30 September 20X9. This did not agree with the balance on Patricia Co’s receivables ledger control account. The following errors were discovered: (i) A credit balance on an individual customer’s account of $400 was incorrectly extracted as a debit balance (ii) An invoice for $3,553 was posted to the customer account as £3,535 (iii) The total of the sales returns day book was overcast by $600 What amount should be shown in Patricia Co’s statement of financial position for accounts receivable at 30 September 20X9? A. $642,918 B. $642,882 C. $644,482 D. $643,418arrow_forward
- The credit total of a trial balance exceeds the debit total by P350. In investigating the causeof the difference, the following errors were determined: a credit to accounts receivable ofP550 was not posted; a P5,000 debit to be made to the Purchases account was debited toAccounts payable instead; a P3,000 credit to be made to the Sales account was credited tothe Accounts receivable account instead; the Interest payable account balance of P4,500was included in the trial balance as P5,400. The correct balance of the trial balance isarrow_forwardBlackhorse Productions, Inc., used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $23,550. The account had an unadjusted credit balance of $11,900 at that time. a. The appropriate bad debt adjustment was recorded. b. Later, an account receivable for $2,900 was determined to be uncollectible and was written off. Required: For each transaction listed above, indicate the amount and direction +for increase or -for decrease) of effects on the financial statement accounts and on the overall accounting equation. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign.) Assets Liabilities Stockholders' Equityarrow_forwardSince it started its operations in 2019, Valdo Co. carried no allowance for doubtful accounts. Uncollectible receivables were expensed as written off and recoveries were credited to income as collected. On March 1, 2023(after the financial statements were issued), management recognized that Valdo accounting policy with respect to doubtful accounts was not correct, and determined that an allowance for doubtful accounts was necessary. Data for the five years follow: 2019 2020 2021 2022 2023 Credit sales 2,100,000 1,850,000 2,050,000 2,000,000 2,000,000 Accounts written off 20,000 40,000 130,000 22,000 113,000 The year-end balance of accounts receivable are as follows: December 31, 2022 - P1,000,000 December 31, 2023 P1,200,000 Recoveries 15,000 20,000 5,000 20,000 40,000 Bad debts are provided for as a percentage of sales. a) The percentage to be used to compute for the allowance for bad debts on December 31, 2023 would be b) How much would be the doubtful accounts expense for 2023? c)…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage Learning
College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
Accounting Changes and Error Analysis: Intermediate Accounting Chapter 22; Author: Finally Learn;https://www.youtube.com/watch?v=c2uQdN53MV4;License: Standard Youtube License