Chapter 2, Problem 4PSA

Which of the following errors would be detected by a trial balance? Group of answer choices The cashier pocketed the cash from a cash sale and did not record it on the register A cash sale was recorded in the sales account as $548 instead of $584 but was correctly recorded in the bank account Supplies purchased on credit were recorded as a debit to the plant and equipment account and a credit to the accounts payable account Staff wages were recorded as office expenses

The trial balance of Kelvin does not balance.   Which TWO of the following errors could explain this, assuming that Kelvin maintains control accounts for its receivables and payables within the double entry system? (1) The sales day book was undercast by $100.(2) Discounts received were credited to sales revenue account.(3) An opening accrual was omitted from the rent account.(4) The debit side of the cash account was undercast. A (1) and  (2)B (2) and (3)C (3) and (4)D (1) and (4) Please give solution with proper explanation

The trial balance of The White Ribbon failed to agree, and the difference was posted to a suspense account. The Income Statement then showed a net loss $15,800. A subsequent audit revealed the following accounting errors a) The loan interest of $25,000 was paid by cheque and correctly posted in the cashbook, but was debited to the loan account b) An invoice for credit sales of $70,000 was posted in the sales ledger but was not posted in the sales account c) Office expense of $30,000 paid by cheque and correctly posted in the cashbook, was debited to the Insurance account d) The Closing Stock valued at $60,500 was taken as $44,500 e) Cash donations of $22,500 was posted to the books as $55,200 f) The Opening Stock valued at $35,000 was taken as $55,000 g) Building repairs paid for $40,000 by cheque was correctly recorded in the cashbook but was debited to the building account Required REQUIRED 2. Prepare the Statement of Adjusted Net Income and identify and briefly explain the errors…

The following misstatements are included in theaccounting records of the Joyce Manufacturing Company:1. A sales invoice was miscalculated by $1,000 as a result of a key-entry mistake.2. Cash paid on accounts receivable that had been prelisted by a secretary was stolenby the bookkeeper who records cash receipts and accounts receivable. He failed torecord the transactions.3. A material sale was recorded on the last day of the year even though the goods werenot shipped until 3 days later.4. Merchandise was shipped to a customer, but no bill of lading was prepared. Becausebillings are prepared from bills of lading, the customer was not billed.5. The controller approved a payment to a consulting firm owned by his sister. Theconsulting firm did not actually perform any services for the company.6. The shipping clerk included several additional valuable items to a shipment that werenot included in the customer’s order and were not invoiced to the customer. Theshipping clerk has an arrangement…

The trial balance of   The White   Ribbon failed to agree, and the difference was posted to a suspense account. The Income Statement then showed a net loss    $15,800. A subsequent audit revealed the following   accounting errorsa) The loan interest of $25,000 was paid   by cheque and correctly posted in the cashbook, but was   debited to the loan accountb) An invoice   for credit sales of $70,000 was posted in the sales ledger but was not posted in the sales accountc) Office    expense of $30,000 paid by cheque and correctly posted in the cashbook,   was debited to the Insurance accountd) The Closing Stock valued at $60,500 was taken as $44,500e) Cash donations of $22,500 was posted to the books as $55,200f) The   Opening Stock valued at $35,000 was taken as $55,000g) Building repairs   paid for $40,000 by cheque   was correctly recorded in the cashbook but was debited to the building accountRequired1. Write up the General Journal to note the   corrections required for the       above…

The following misstatements are sometimes found in the salesand collection cycle’s account balances:1. Several cash receipts were posted to the incorrect customer accounts.2. Several accounts receivable in the accounts receivable master file are not includedin the aged trial balance.3. One account receivable in the accounts receivable master file is included on theaged trial balance twice.4. A shipment made in the subsequent period is recorded as a current period sale.5. The allowance for uncollectible accounts is inadequate because of the client’sfailure to reflect depressed economic conditions in the allowance.6. Several accounts receivable are in dispute as a result of claims of defective merchandise.7. The pledging of accounts receivable to the bank for a loan is not disclosed in thefinancial statements.8. Goods were returned for credit on the last day of the fiscal year but the sales returnwas not recorded until the following fiscal year.9. Long-term interest-bearing notes…

A customer of Mutare paid for merchandise originally purchased on account with a check thathas been erroneously entered into Mutare’s cash account for $570 (it actually has been issuedand paid for $750).Required:Record the appropriate journal entry to correct the error.

Prior to recording the following, Elite Electronics, Inc., had a credit balance of $2,000 in its Allowance for Doubtful Accounts.Required:Prepare journal entries for each transaction.a. On August 31, a customer balance for $300 from a prior year was determined to be uncollectible and was written off.b. On December 15, the customer balance for $300 written off on August 31 was collected in full.

Ryan has a suspense account with a debit balance of $740. Upon investigation, the following discrepancies were found: (i) Discounts unexpectedly taken by customers of $229 have only been entered in the receivables control account (ii) Cash sales of $820 has not been recorded to the sales account, the cash has been debited to cash at bank (iii)Bank interest received of $54 has been debited to the interest income account and credited to the cash account. What is the balance on the suspense account after the errors have been corrected? DR or CR?