Chapter 3, Problem 4E

The balance on the receivables ledger control account of Robin & Co on 30 September amounted to $3,800 which did not agree with the net total of the list of receivables ledger balances at that date. Errors were found and the appropriate adjustments, when made, balanced the books. The items were as follows: (1) Debit balances in the receivables ledger, amounting to $103, had been omitted from the list of balances. (2) An irrecoverable debt amounting to $400 had been written off in the receivables ledger but had not been posted to the irrecoverable debts expense account or entered in the control account. An item of goods sold to Sparrow, $250, had been entered once in the sales day book but posted to his account twice. (4) $25 discount allowed to Wren had been correctly recorded and posted in the books. This sum had been subsequently disallowed, debited to Wren's account, and entered in the discount received column of the cash book. (5) No entry had been made in the control account in…

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 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 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…

Steering Corporation reported the following selected information in its general ledger at December 31: All sales were on account. Some accounts receivable were collected. One account was written off; there were no subsequent recoveries. At the end of the year, uncollectible accounts were estimated to total $1,980. Using your knowledge of receivables transactions, determine the missing amounts. (Hint: You may not be able to solve the below items in alphabetical order. In addition, you may find it helpful to reconstruct the journal entries.) Beg. bal. End, bal. (a) U (f) Accounts Receivable 17,800 Allowance for Doubtful Accounts Beg. bal. 900 Unadj. bal. End. bal. Sales Bad Debts Expense (b) (d) (e) 54,900 1,800 900 77,200

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 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…

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.

The trial balance prepared at December 31 for Kim Yong San Inc., did not balance. Debit total was P1,592,500 and credit total was P1,532,000. In determining the cause of the difference, you discovered the following errors: a credit to Cash of P6,500 was not posted; a P20,000 credit to be made to Sales account was credited to the Accounts Receivable account instead; the wages payable account balance of P93,000 was listed in the trial balance as P39,000. What is the correct trial balance total? A. P1,592,500 B. P1,606,000 C. P1,612,500 |D. P1,586,000