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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:The bookkeeper for Nevado Company has prepared the following trial balance:
Nevado Company
Trial Balance
June 30, 20--
Account Name
Cash
Accounts Receivable
Supplies
Prepaid Insurance
Equipment
Accounts Payable
M. Nevado, Capital
M. Nevado, Drawing
Professional Fees
Rent Expense
Miscellaneous Expense
Debit Credit
3,300
8,300
790
860
21,490
6,400
3,560
16,500
23,200
660
2,380
40,880 46,560
The bookkeeper has asked for your help. In examining the company's journal and ledger, you discover the following errors. Use this information to construct a corrected trial balance.
a. The debits to the Cash account total $10,560, and the credits total $4,360.
b. A $680 payment to a creditor was entered in the journal correctly but was not posted to the Accounts Payable account.
c. The first two numbers in the balance of the Accounts Receivable account were transposed when the balance was copied from the ledger to the trial balance.
d. The $2,000 amount withdrawn by the owner for personal use was debited to Miscellaneous Expense by mistake - it was correctly credited to Cash.
DERIT
List all the accounts in the proper order as described in the textbook. If no amount is required, leave the entry box blank.
Nevado Company
Trial Balance
June 30, 20--
CREDIT
Expert Solution
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- Jervis sels $4,300 of its accounts receivable to Northem Bank in order to obtain necessary cash. Northem Bank charges 2 tactoing fee Wmat entry should Jervis make to record the transaction? Multiple Choice Debir Accounts Receivable $4,300; credit Factoring Fee Expense $86; credit Cash $4214 Debit Accounts Receivable $4,214; debit Factoring Fee Expense $86; credit Cash $4,300. Debit Cash $4,300; credit Factoring Fee Expense $86; credit Accounts Receivable $4,300arrow_forwardSales-Related Transactions, Including the Use of Credit Cards Journalize the entries for the following transactions:arrow_forward1. Using EXCEL => Set up "T – Accounts" for each account listed in the Campln Inc. Post-Closing Trial Balance. "T-Account" example for several accounts. Assets Cash Accounts Receivable Inventory Beg $ 750,000 Beg $ 450,000 Beg $ 1,200,000 The following Post-Closing Trial Balance is available in EXCEL. Campln Inc. Post Closing Trial Balance 12/31/2020 Debit Credit Cash 750,000 Accounts Receivable 450,000 Allowance for Doubtful Accounts $ 10,000 Prepaid Insurance 100,000 Inventory 1,200,000 Equipment 4,500,000 Accumulated Depreciation - Equipment 1,350,000 Building 850,000 Accumulated Depreciation - Building $4 250,000 Land 1,100,000 Accounts Payable Salaries Payable 375,000 50,000 1,400,000 2,250,000 6,000 Mortgage Payable $ Long-Term Debt Common Stock - Par $0.01 APIC $ 2,994,000 Retained Earnings $ 265,000 8,950,000 8,950,000 $4arrow_forward
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