EBK ACCOUNTING PRINCIPLES
13th Edition
ISBN: 9781119411017
Author: Weygandt
Publisher: WILEY
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Chapter 4, Problem 12E
a.
To determine
Introduction: Accounting is a process under which the financial transactions are identified, recorded, analyzed, and summarized, and at the end of the year, the financial results are reported. The various financials prepared at the end of the year are the balance sheet,
To correct: The errors by first reversing the incorrect entry and then preparing the correct entries.
b.
To determine
Introduction: Accounting is a process under which the financial transactions are identified, recorded, analyzed, and summarized, and at the end of the year, the financial results are reported. The various financials prepared at the end of the year are the balance sheet, cash flow statement, and income statement.
To correct: The errors by preparing the correcting entries without making the reversing entries.
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Required:
Post the rectification entry for each of the above errors.
Question five:
Rectify the following errors:
1. Other income received of Tshs880,000 was correctly recorded in the cash
book, but was debited to the other income account.
2. Cash paid for wages of Tshs9.6 million was posted to the wages account as
Tshs6.9 million.
3. The purchases day book was overcast by Tshs2 million.
4. The sales day book was undercast by Tshs6 million.
5. The cash book credit side was undercast by Tshsl.3 million.
6. The prepaid expense account debit side was undercast by Tshs0.6 million.
7. A sale of Tshsl.5 million was fully credited to the sales account. However,
sales tax of Tshs0.5 million was included in it.
8. A building purchased for Tshs60 million was entered in the building account
as Tshs50 million. The company charges 2% depreciation.
9. Repairs to machinery of Tshs5 million were capitalised and a depreciation of
5% was charged on it.
Question six:
How much will appear in the suspense…
The following errors were discovered during the financial year ended 28 February 2021. a) A debtor that was owing N$ 600 was erroneously written-off as bad debt; b) Cash receipt of $300 was recorded as bank receipt; c) A payment of N$ 1 500 received from a customer was recorded on supplier; d) Credit sales of N$ 4 300 was recorded to supplier account;
Page 18 of 19 e) Bank charge of $420 was completely omitted from the records; f) Stationery purchased of $ 580 was debited to advertisement; g) Printing that was purchased by EFT was completely ignored in the books, $630; h) A customer that was owing $1 250 was declared bankrupt and the transaction was not recorded; i) The owner withdraws a cheque for $900 and deposited in the business; j) Depreciation for motor vehicle was not provided for. Depreciation is at 10% straight line and no residual value. k) Depreciation for computer equipment was not provided for. Depreciation as at 15%, straight line with N$ 2 000 residual value. REQUIRED…
Tech Support Services has the following unadjusted trial balance as of January 31, 2019:
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 policy acquired at a cost of $3,000 was posted as a credit to PrepaidInsurance.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 a withdrawal by the owner was posted as a debit to ThadEngelberg, Capital.i. The balance of $28,350 in Advertising Expense was entered as $23,850 in the trialbalance.j. Miscellaneous Expense, with a balance of $4,600, was omitted from the trial…
Chapter 4 Solutions
EBK ACCOUNTING PRINCIPLES
Ch. 4 - Prob. 1QCh. 4 - 2. Explain the purpose of the worksheet.
Ch. 4 - 3. What is the relationship, if any, between the...Ch. 4 - Prob. 4QCh. 4 - Prob. 5QCh. 4 - Prob. 6QCh. 4 - Prob. 7QCh. 4 - Prob. 8QCh. 4 - 9. Which of the following accounts would not...Ch. 4 - 10. Distinguish between a reversing entry and an...
Ch. 4 - Prob. 11QCh. 4 - Prob. 12QCh. 4 - Prob. 13QCh. 4 - Prob. 14QCh. 4 - Prob. 15QCh. 4 - Prob. 16QCh. 4 - Prob. 17QCh. 4 - Prob. 18QCh. 4 - Prob. 20QCh. 4 - Prob. 21QCh. 4 - BE4-1 The steps in using a worksheet are presented...Ch. 4 - Prob. 2BECh. 4 - Prob. 3BECh. 4 - Prob. 4BECh. 4 - Prob. 5BECh. 4 - Prob. 6BECh. 4 - Prob. 7BECh. 4 - BE4-8 The steps in the accounting cycle are listed...Ch. 4 - Prob. 9BECh. 4 - Prob. 10BECh. 4 - Prob. 11BECh. 4 - Prob. 12BECh. 4 - Prob. 1DIECh. 4 - Prob. 2DIECh. 4 - DO IT! 4-3 Hanson Company has an inexperienced...Ch. 4 - Prob. 4DIECh. 4 - Prob. 1ECh. 4 - E4-2 The adjusted trial balance columns of the...Ch. 4 - E4-3 Worksheet data for Savaglia Company are...Ch. 4 - E4-4 Worksheet data for Savaglia Company are...Ch. 4 - Prob. 5ECh. 4 - Prob. 6ECh. 4 - Prob. 7ECh. 4 - Prob. 8ECh. 4 - Prob. 9ECh. 4 - E4-10 Renee Davis has prepared the following list...Ch. 4 - Prob. 11ECh. 4 - Prob. 12ECh. 4 - Prob. 13ECh. 4 - Prob. 14ECh. 4 - Prob. 15ECh. 4 - Prob. 16ECh. 4 - Prob. 17ECh. 4 - Prob. 18ECh. 4 - Prob. 19ECh. 4 - P4-1A The trial balance columns of the worksheet...Ch. 4 - P4-3A The completed financial statement columns of...Ch. 4 - P4-5A Anya Clark opened Anya’s Cleaning Service on...Ch. 4 - Prob. 7EYCTCh. 4 - Prob. 1ISTQCh. 4 - Prob. 2ISTQCh. 4 - Prob. 3ISTQCh. 4 - Prob. 4ISTQCh. 4 - Prob. 1IFRECh. 4 - Prob. 2IFRECh. 4 - Prob. 3IFRECh. 4 - Prob. 4IFRE
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- The Colby Group has the following unadjusted trial balance as of August 31, 2019: The debit and credit totals are not equal as a result of the following errors: a. The cash entered on the trial balance was understated by 6,000. b. A cash receipt of 5,600 was posted as a debit to Cash of 6,500. c. A debit of 11,000 to Accounts Receivable was not posted. d. A return of 150 of defective supplies was erroneously posted as a 1,500 credit to Supplies. e. An insurance policy acquired at a cost of 1,200 was posted as a credit to Prepaid Insurance. f. The balance of Notes Payable was understated by 20,000. g. A credit of 4,800 in Accounts Payable was overlooked when determining the balance of the account. h. A debit of 7,000 for a withdrawal by the owner was posted as a credit to Terry Colby, Capital. i. The balance of 58,100 in Rent Expense was entered as 51,800 in the trial balance. j. Gas, Electricity, and Water Expense, with a balance of 24,150, was omitted from the trial balance. Instructions 1. Prepare a corrected unadjusted trial balance as of August 31, 2019. 2. Does the fact that the unadjusted trial balance in (1) is balanced mean that there are no errors in the accounts? Explain.arrow_forwardThe following errors were discovered during the financial year ended 28 February 2021.a) A debtor that was owing N$ 600 was erroneously written-off as bad debt;b) Cash receipt of $300 was recorded as bank receipt;c) A payment of N$ 1 500 received from a customer was recorded on supplier;d) Credit sales of N$ 4 300 was recorded to supplier account; Page 18 of 19e) Bank charge of $420 was completely omitted from the records;f) Stationery purchased of $ 580 was debited to advertisement;g) Printing that was purchased by EFT was completely ignored in the books, $630;h) A customer that was owing $1 250 was declared bankrupt and the transaction was notrecorded;i) The owner withdraws a cheque for $900 and deposited in the business;j) Depreciation for motor vehicle was not provided for. Depreciation is at 10% straight lineand no residual value.k) Depreciation for computer equipment was not provided for. Depreciation as at 15%,straight line with N$ 2 000 residual value.REQUIREDPrepare a…arrow_forwardThe firm of Adam and Son extracted a Trial Balance from the books on 30th June 2020 and found that the credit side exceeded the debit by sh.92,000. This difference was entered into a suspense account and the final account prepared. The following mistakes were subsequently discovered: 1. machinery repairs of sh.40,000 had been entered on the debit side of the machinery account. 2. Cash discount of sh.2000 allowed by Milele Ltd., a payable had not been entered in Milele Ltd Account. 3. The purchase of a computer for sh.320,000 had been entered in the office equipment account as sh.230,000. 4. The Sales Book had been under cast by sh.10,000. 5. Loan interest charged by the bank, sh.60,000, had been entered in the Bank account but not posted to the interest on loan account. 6. Sh.25,000 received for the sale of an old office desk had been debited in the cash book and also debited to the office equipment account. Required: a) Draw the journal entries…arrow_forward
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