EXERCISE 2-5 Speedy Sewing Services, owned by T. Nguyen, hired a new bookkeeperwho is not entirely familiar with the process of preparing a trial balance. All of theaccounts have normal balances. Find the errors and prepare a corrected trial balance forDecember 31 of this year.Speedy Sewing ServicesTrial BalanceDecember 31, 20-Account NameAccounts ReceivableCashAccounts PayableEquipmentT. Nguyen, CapitalDebitCredit10,7003,2009,50024,00022,800T. Nguyen, Drawing1,900Prepaid Insurance1,300Income from Services36,000Wages Expense17,500Rent ExpenseSuppliesUtilities Expense4,5001,8003,40049,90086,700

Correcting the Trial Balance: Normal Balances:Assets (debit balance): Accounts Receivable, Cash,…

Answered: EXERCISE 2-5 Speedy Sewing Services,…

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter4: Posting To A General Ledger

Section4.3: Journalizing Correcting Entries And Correcting Posting Errors

Problem 1WT

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32-After preparing the trial balance, the accountant finds that the total of debit side is OMR 125,600 and Total of Credit Side OMR 126,500. This difference should be treated before rectification of errors was a. Debit Suspense account OMR 125,600 and Credit Trial Balance OMR 126,500 b. Suspense account should be cancelled with OMR 1800 c. Debit Suspense account with OMR 900 d. Credit Suspense account with OMR 900
Resolving Errors and Correcting a Trial Balance Assume we examine the accounts of Century Inc. and identify the following errors. 1. Equipment purchased for $37,500 at year-end was debited to Expenses. 2. Sales on credit of $4,145 were debited to Accounts Receivable for $4,460 and credited to Revenues for $4,145. 3. A $30,000 cash collection on accounts receivable was debited to Cash and credited to Revenues. 4. The inventory amount is understated by $10,000 because the entry to record the purchase of $10,000 of inventory was incorrectly recorded in cost of goods sold (cost of goods sold is included in Expenses). The unadjusted trial balance of Century Inc. is provided below. Prepare a correct unadjusted trial balance, correcting for all errors, including improper recording of debits and credits. Note: Do not use negative sign in your answers. Accounts Cash Accounts receivable Allowance for doubtful accounts Inventory Equipment Accumulated depreciation Accounts payable Notes payable…
emaining Time: 1 hour, 16 minutes, 34 seconds. Question Completion Status: QUESTION 1 The requirements for mora creditoris(default of the creditor) include the following O a. creditor fails to accept proper performance b. the debt must be due O C. the debtor fails to perform on time O d. the delay in accepting performance is due to the fault of the creditor or persons for whose actions he is responsible O e. the delay is due to the fault of the debtor or persons for whose actions he is responsible Of. the debtor must tender proper performance g. b. c and e h. a, b, d and f QUESTION 2 A party to a contract who makes it impossible for performance to take place, commits the following form of breach of contract a. Mora creditoris/default of the creditor b. positive malperformance C. rendering performance impossible/prevention of performance
Current Attempt in Progress Blossom Products uses both special journals and a general journal. Blossom also posts customers' accounts in the accounts receivable subsidiary ledger. The postings for the most recent month are included in the subsidiary T-accounts below. Estes Bal. 260 Bal. 175 Truong 0 100 Gehrke Bal. 185 295 Weiser Bal. 195 220 240 290 100 185 195 Determine the correct amount of the end-of-month posting from the sales journal to the Accounts Receivable control account. Amount of the end-of-month posting from the sales journal to the Accounts Receivable control account $
23. If a cash purchase of an office equipment for P50,000 was debited to office supplies expense by the same amount, what effect this journalizing process error has in your trial balance? * O A. The trial balance will be out of balance B. The trial balance will be in-balance O C. It require correction in journal book O D. It requires correction in general ledger
Problem #15Correcting a Trial BalanceBelow is the trial balance of Gualberto Magdaraog Repair Service, which does not balance:The following information is obtained from a review of the record keeping process: a. An account receivable for P19,600 was incorrectly added as P16,900 whencomputing the balance of the Accounts Receivable account.b. A debit posting from the journal for P5,200 is missing from the Advertising Expenseaccount.c. A credit posting of P15,000 to Notes Payable should have been made to AccountsPayable.d. A debit posting of P34,000 to Supplies was incorrectly posted as P3,400.e. Credits to the ledger Accounts Payable account were under-footed by P60,000.f. Revenues are overstated in the ledger account by P40,000.g. A credit posting for Repair Revenues from the journal in the amount of P63,600 ismissing.h. Supplies acquired in the amount of P17,400 have been incorrectly posted to theOffice Equipment account.Required: Prepare a corrected trial balance.
Corrected Trial Balance The Colby Group has the following unadjusted trial balance as of August 31, 20Y8. The Colby Group Unadjusted Trial Balance August 31, 20Y8 Debit Balances Credit Balances Cash 19,180 Accounts Receivable 34,330 Supplies 4,510 Prepaid Insurance 4,850 Equipment 000'60 Notes Payable Accounts Payable 9,740 Terry Colby, Capital 70,010 Terry Colby, Drawing Fees Earned 359,400 Wages Expense 212,332 Rent Expense 000' Advertising Expense 15,400 Miscellaneous Expense 11,500 476,902 484,450 The debit and credit totals are not equal as a result of the following errors: a. The balance of cash was overstated by $10,000. b. A cash receipt of $5,200 was posted as a debit to Cash of $2,500. C. A debit of $3,500 to Accounts Receivable was not posted. d. A return of $879 of defective supplies was erroneously posted as a $897 credit to Supplies. e. An insurance policy acquired at a cost of $800 was posted as a credit to Prepaid Insurance. f. The balance of Notes Payable was…
Chapter 8 -Receivables Creative Solutions Company, a computer consulting firm, has decided to write off the $11,750 balance of an account owed by a customer, Wil Treadwell. On March 1, journalize the entry to record the write-off, assuming that (a) the direct write-off method is used and (b) the allowance method is used. Refer to the Chart of Accounts for exact wording of account titles. Direct Write Off 1 2 Allowance Method 1 2 Date Date 1 2 GENERAL JOURNAL Description GENERAL JOURNAL Date Description The adjusting entry to record uncollectible accounts is: GENERAL JOURNAL Description Post ref Post ref Debit Post ref Debit Assume that a business sold $750,000 worth of merchandise on credit. The business estimates that 2% of all credit sales are uncollectible. Expense to be recorded = $750,000 x 2%= $15,000 Page Debit Credit Page Credit Page Credit 1 2 1 2 1 2
Direct write-off methodJournalize the following transactions, using the direct write-off methodof accounting for uncollectible receivables:Mar. 17 Received $275 from Shawn McNeely and wrote off the remainder owed of $1,000 as uncollectible.July 29 Reinstated the account of Shawn McNeely and received $1,000cash in full payment.
C. Aging Accounts Assume that accounts are aged from the date of billing. If you are aging accounts on 10/30/XX, select the letter of the correct length of time that each of the following accounts has been outstanding. a. Current (0 to 30 days) b. 31 to 60 days c. 61 to 90 days d. 91 to 120 days e. Older than 120 days 1. Service provided on 7/4/XX, billed on 8/1/XX 2. Service provided on 9/22/XX, billed on 10/3/XX 3. Service provided on 8/13/XX, billed on 8/22/XX 4. Service provided on 4/18/XX, billed on 4/25/XX 5. Service provided on 5/13/XX, billed on 6/6/XX 6. Service provided on 6/19/XX, billed on 7/12/XX 7. Service provided on 6/25/XX, billed on 7/18/XX 8. Service provided on 7/18/XX, billed on 8/15/XX
balance. In searching for the error, an employee discovered that a transaction for the The trial balance prepared by Reynaldo Abas Consulting as at Sept. 30, 2023 was not in purchase of a typewriter on credit for P6,100 has been recorded by a debit of P6,100 to the Office Equipment account and a debit of P6,100 to Accounts Payable. The credit Problem #15 Effects of Errors on the Trial Balance balance. In searching for the error, an employee discovered that a transaction for 98 column of the incorrect trial balance had a total of P926,000. Was the Office Equipment account overstated, understated, or correctly stated in the trial balance? 0Tfakd a. b. Was the total of the debit column of the trial balance overstated, understated, or correctly stated? Was the Accounts Payable account overstated, understated, or correctly С. stated in the trial balance? d. Was the total of the credit column of the trial balance overstated, understated or correctly stated? How much was the total of the…
Problem 4 The Physical Therapy Center specializes in helping patients regain motor skills after serious accidents. The center has the following balances on December 31, before any adjustment: Sales - $1,500,000, A/R-$110,000, Allowance for Uncollectible Accounts - $4,000 (debit). The center is considering two methods of estimating the allowance/bad debts, are the balance sheet approach and the income statement approach. Estimates relating to both are presented below: Aging of Accounts Receivable Age Group Amount of Receivable $.60,000 26,000 16,000 8,000 2. 3. Net yet due 0-60 days past due 61-120 days past due More than 120 days past due Total $ 110,000 *********** Est. % Uncollectible 4% 20% 30% 85% Physical Therapy Center is also considering using an estimate of 1% of sales to determine bad debts. Required: Part A and B are independent. Part A: Given the company uses the Balance Sheet Approach, complete the following. 1. Estimate the amount of uncollectible receivables. Record the…

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