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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, 2014. 2. Does the fact that the unadjusted trial balance in (1) is balanced mean that there are no errors in the

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, 2014. 2. Does the fact that the unadjusted trial balance in (1) is balanced mean that there are no errors in the

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 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, 2014.
2. Does the fact that the unadjusted trial balance in (1) is balanced mean that there are no errors in the accounts? Explain.

07.41 O O :4G PR 2-5A Corrected trial balance The Colby Group has the following unadjusted trial balance as of August 31, 2014 The Colby Group Unadjusted Trial Balance August 31, 2014 Credit Balances Debit Balances 17,300 37,000 Cash Accounts Receivable Supplies 7,400 Prepaid Insurance. 1,900 Equipment Notes Payable 196,000 97600 26000 129 150 Accounts Payable Terry Colby, Capital Terry Colby, Drawing Fees Earned Wages Expense Rent Expense Advertising Expense. Mscellaneous Expense 56000 454450 270,000 51.800 25200 The debit and credit to ta ls are not equal as a result of the followi The Colby Group Unadjusted Trial Balance August 31, 2014 The Credit Balances Debit Balances Cash 17,300 d. Are Accounts Receivable. Supp Supplies. Prepaid Insurance Equipment.. Notes Payable. Accounts Payable Terry Colby, Capital. Terry Colby, Drawing 37,000 7,400 1,900 196,000 Insura 97,600 26,000 129,150 56,000 the a Fees Earned.. 454,450 h. Ad Wages Expense 270,000 Capi Rent Expense Advertising Expense.. Miscellaneous Expense 51,800 25,200 5,100 Gas 667,700 707,200 balan Instructions 1. Prepare a corrected unadjusted trial balance as of August31, 2014. 2. Does the fact that the unadjusted trial balance in (1) is balanced mean that there are no errors in the accounts? Explain. Answer THE COLBY GROUP Unadjusted Trial Balance 1. August 31, 2014 Credit Balances Debit Balances Cash 22.400 Accounts Recelvable Supplies 48,000 8,750 4,300 196.000 Prepaid Insurance Equipment Notes Payable Accounts Payable Terry Colby, Capital Tery Colby, Drawing Fees Earned Wages Expense Rent Expense AdvertisingExpense 117,600 30800 122,150 63.000 454,450 270.000 58,100 25,200 Gas, Electricity, and Water Expense Miscellaneous Expense 24,150 6,100 725.000 725,000 $17.300 $6.000 (a)-$900 (b) 21
Transcribed Image Text:07.41 O O :4G PR 2-5A Corrected trial balance The Colby Group has the following unadjusted trial balance as of August 31, 2014 The Colby Group Unadjusted Trial Balance August 31, 2014 Credit Balances Debit Balances 17,300 37,000 Cash Accounts Receivable Supplies 7,400 Prepaid Insurance. 1,900 Equipment Notes Payable 196,000 97600 26000 129 150 Accounts Payable Terry Colby, Capital Terry Colby, Drawing Fees Earned Wages Expense Rent Expense Advertising Expense. Mscellaneous Expense 56000 454450 270,000 51.800 25200 The debit and credit to ta ls are not equal as a result of the followi The Colby Group Unadjusted Trial Balance August 31, 2014 The Credit Balances Debit Balances Cash 17,300 d. Are Accounts Receivable. Supp Supplies. Prepaid Insurance Equipment.. Notes Payable. Accounts Payable Terry Colby, Capital. Terry Colby, Drawing 37,000 7,400 1,900 196,000 Insura 97,600 26,000 129,150 56,000 the a Fees Earned.. 454,450 h. Ad Wages Expense 270,000 Capi Rent Expense Advertising Expense.. Miscellaneous Expense 51,800 25,200 5,100 Gas 667,700 707,200 balan Instructions 1. Prepare a corrected unadjusted trial balance as of August31, 2014. 2. Does the fact that the unadjusted trial balance in (1) is balanced mean that there are no errors in the accounts? Explain. Answer THE COLBY GROUP Unadjusted Trial Balance 1. August 31, 2014 Credit Balances Debit Balances Cash 22.400 Accounts Recelvable Supplies 48,000 8,750 4,300 196.000 Prepaid Insurance Equipment Notes Payable Accounts Payable Terry Colby, Capital Tery Colby, Drawing Fees Earned Wages Expense Rent Expense AdvertisingExpense 117,600 30800 122,150 63.000 454,450 270.000 58,100 25,200 Gas, Electricity, and Water Expense Miscellaneous Expense 24,150 6,100 725.000 725,000 $17.300 $6.000 (a)-$900 (b) 21
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