COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
4th Edition
ISBN: 9781260255157
Author: Haddock
Publisher: MCG CUSTOM
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Chapter 3, Problem 5CSR
To determine
Determine the actions in order to evaluate errors.
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An employee working on her first trial balance discovers that the Equipment account has a credit balance of $2500 and a customer's A/R account has a credit balance of $25.
Based on the knowledge you have gained in this course and how account balances are recorded and increase/decrease, has the accountant made a mistake in her records or are these situations possible?
The following information is obtained from a review of the record keeping process. Analyze the given
information and prepare a modified trial balance. Show your solutions.
Ricanor Accounting Services
Trial Balance
Dec. 31, 2021
Debit
Credit
Cash
P189,000
284,600
66,400
40,000
526,800
Accounts Receivable
Supplies
Prepaid Insurance
Office Equipment
Notes Payable
Accounts Payable
Ricanor, Capital
Ricanor, Withdrawals
P130,000
195,400
297,200
100,000
821,400
Service Income
Salaries Expense
Advertising Expense
Totals
348,700
12,200
P1,467,700
P1,544,000
a. An account receivable for P 24,300 was incorrectly added as P 23,400 when computing the
balance of the Accounts Receivable account.
b. A debit posting from the journal for P5,200 is missing from the Salaries Expense account.
C. A debit posting of P15,000 to Notes Payable should have been made to Accounts Payable.
d. A debit posting of P25,000 to Supplies was incorrectly posted as P2,500.
e. Credits to the ledger Accounts Payable account…
Damon Davis was working on a spreadsheet for the Drano Plumbing Company.
He calculated that the net profit would be $50,000.
He totaled the columns on the Balance Sheet as follows: debit, $400,000; and credit, $300,000.
What was the most likely cause of this disparity?
If this was not the case, how should he go about determining the cause of the error?
Chapter 3 Solutions
COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
Ch. 3 - Increases are recorded on which side of asset,...Ch. 3 - What is a footing?Ch. 3 - Prob. 1.3SRQCh. 3 - Prob. 1.4SRECh. 3 - Prob. 1.5SRECh. 3 - Prob. 1.6SRACh. 3 - Prob. 2.1SRQCh. 3 - Prob. 2.2SRQCh. 3 - What is a trial balance and what is its purpose?Ch. 3 - Prob. 2.4SRE
Ch. 3 - Prob. 2.5SRECh. 3 - Prob. 2.6SRACh. 3 - Prob. 1CSRCh. 3 - Prob. 2CSRCh. 3 - Prob. 3CSRCh. 3 - On which side of asset, liability, and owners...Ch. 3 - Prob. 5CSRCh. 3 - Prob. 1DQCh. 3 - Prob. 2DQCh. 3 - Prob. 3DQCh. 3 - Prob. 4DQCh. 3 - Prob. 5DQCh. 3 - Prob. 6DQCh. 3 - Indicate whether each of the following types of...Ch. 3 - The terms debit and credit are often used in...Ch. 3 - Why is Prepaid Rent considered an asset account?Ch. 3 - Why is the modern system of accounting usually...Ch. 3 - Prob. 11DQCh. 3 - Prob. 1ECh. 3 - Prob. 2ECh. 3 - Prob. 3ECh. 3 - Prob. 4ECh. 3 - Prob. 5ECh. 3 - Prob. 6ECh. 3 - Prob. 7ECh. 3 - Preparing a chart of accounts. The accounts that...Ch. 3 - Prob. 1PACh. 3 - Prob. 2PACh. 3 - Prob. 3PACh. 3 - Prob. 4PACh. 3 - The accountant for the firm owned by Randy Guttery...Ch. 3 - Prob. 1PBCh. 3 - Prob. 2PBCh. 3 - The following transactions took place at...Ch. 3 - Prob. 4PBCh. 3 - Prob. 5PBCh. 3 - Prob. 1CTPCh. 3 - Prob. 2CTPCh. 3 - In discussing a firms latest financial statements,...Ch. 3 - Prob. 2MFCh. 3 - Prob. 3MFCh. 3 - Prob. 4MFCh. 3 - Prob. 1EDCh. 3 - Prob. 1FSA
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