Question : 193. The following trial balance was prepared from the general ledger : 1256653

 

193. The following trial balance was prepared from the general ledger of Hal’s Auto Repair.

 

 

HAL’S AUTO REPAIR

Trial Balance

October 31

 

Debit

Credit

Cash

$    975

 

Accounts receivable

3,800

 

Supplies

500

 

Repair equipment

13,000

 

Office equipment

6,600

 

Accounts payable

 

$   4,510

Common stock

 

10,000

Retained earnings

 

13,000

Dividends

4,200

 

Repair fees earned

 

10,875

Supplies expense

8,600

 

Totals

$37,675

$38,385

 

Since the trial balance did not balance, you decided to examine the accounting records. You found that the following errors had been made:

1.  A purchase of supplies on account for $245 was posted as a debit to Supplies and as a debit

     to Accounts Payable.

2.  An investment of $500 cash by the owner was debited to Common Stock and credited to

     Cash.

3.  In computing the balance of the Accounts Receivable account, a debit of $600 was omitted

     from the computation.

4.  One debit of $300 to the Dividends account was posted as a credit.

5.  Office equipment purchased for $800 was posted to the Repair Equipment account.

6.  One entire entry was not posted to the general ledger. The transaction involved the receipt

     of $125 cash at the time repair services were performed.

 

Prepare a corrected trial balance for the Hal’s Auto Repair as of October 31.

 

 

 

 

 

 

 

 

 

194. The following are all of the accounts of Flaherty Company that have a balance at the end of August. All accounts have normal balances:

Accounts receivable

$36,000

Cash

$27,000

Equipment

59,000

Advertising expense

5,000

Service revenues earned

75,000

Accounts payable

31,000

Rent expense

3,600

Dividends

24,000

Office supplies

1,500

Salaries expense

30,000

Notes payable

22,000

Common stock

20,000

 

 

Retained earnings

58,100

a. Calculate net income

b. Determine the amount of retained earnings to be shown on the August 31 balance sheet.

 

 

195. Based on the following trial balance for Sal’s Beauty Shop, prepare an income statement, statement of retained earnings and a balance sheet. Sal made no additional investments in the company during the year.

 

SAL’S BEAUTY SHOP

Trial Balance

December 31

Cash

$  6,500

 

Accounts receivable

475

 

Beauty supplies

2,500

 

Beauty shop equipment

17,000

 

Accounts payable

 

$   745

Common stock

 

10,000

Retained earnings

 

11,155

Dividends

36,000

 

Revenue earned

 

72,000

Beauty supplies expense

3,425

 

Rent expense

6,000

 

Wages expense

22,000

 

Totals

$93,900

$93,900