Corporate Financial Accounting
14th Edition
ISBN: 9781305653535
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 2, Problem 2.5BPR
Corrected
Tech Support Services has the following unadjusted trial balance as of January 31, 2018:
| Tech Support Services Unadjusted Trial Balance January 31, 2018 | ||
| Debit Balances | Credit Balances | |
| Cash | 25,550 | |
| Accounts Receivable | 44,050 | |
| Supplies | 6,660 | |
| Prepaid Insurance | 3,600 | |
| Equipment | 162,000 | |
| Notes Payable | 75,000 | |
| Accounts Payable | 13,200 | |
| Common Stock | 18,000 | |
| 83,850 | ||
| Dividends | 33,000 | |
| Fees Earned | 534,000 | |
| Wages Expense | 306,000 | |
| Rent Expense | 62,550 | |
| Advertising Expense | 23,850 | |
| Gas, Electricity, and Water Expense | 17,000 | |
| 684,260 | 724,050 | |
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 poky 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 dividends was posted as a debit to Retained Earnings.
- 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, 2018.
- 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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At December 1, 2022, Tamarisk, Inc. Accounts Receivable balance was $17470. During December, Tamarisk had credit sales of
$46800 and collected accounts receivable of $37440. At December 31, 2022, the Accounts Receivable balance is
O $64270 debit
O $17470 debit
O $26830 credit
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Journalizing transactions using the direct write-off method versus the allowance method
During August 2018, Lima Company recorded the following:
• Collections on account, $106,400.
• Write-offs of uncollectible receivables, $990.
• Recovery of receivable previously written off, $800.
Requirements
Journalize Lima’s transactions during August 2018, assuming Lima uses the direct write-off method.
Journalize Lima’s transactions during August 2018, assuming Lima uses the allowance method.
Instructions
Chart of Accounts
General Journal
Bradford Company's accounting records on December 31, 2019, provide the following
CHART OF ACCOUNTS
1a. Prepare the journal entries to record the estimate of Bradford's bad debt expense on December 31 assuming bad debts are
information (prior to adjustment):
estimated to be 2% of net credit sales.
Bradford Company
General Ledger
Cash sales
$ 93,100
General Journal Instructions
Net credit sales
283,600
ASSETS
REVENUE
Total sales (net)
$376,700
111 Cash
411 Sales Revenue
PAGE 1
121 Accounts Receivable
Accounts receivable
131,300
GENERAL JOURNAL
122 Allowance for Doubtful
EXPENSES
Allowance for doubtful accounts
2,150
(credit)
Accounts
500 Cost of Goods Sold
DATE
ACCOUNT TITLE
POST. REF.
DEBIT
CREDIT
1
141 Inventory
511 Insurance Expense
Required:
152 Prepaid Insurance
512 Utilities Expense
2
1. Prepare the journal entries to record the estimate of Bradford's bad debt expense for
181 Equipment
521 Salaries Expense
2019 assuming:
198…
Chapter 2 Solutions
Corporate Financial Accounting
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