Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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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.
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The Colby Group has the following unadjusted trial balance as of August 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 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 PrepaidInsurance.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 balanceof 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 thetrial…
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 PrepaidInsurance.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 ThadEngelberg, Capital.i. The balance of $28,350 in Advertising Expense was entered as $23,850 in the trialbalance.j. Miscellaneous Expense, with a balance of $4,600, was omitted from the trial…
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…
Chapter 2 Solutions
Financial Accounting
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