Question : 222. Prepare a trial balance, listing the following accounts in proper : 1226943

 

222. Prepare a trial balance, listing the following accounts in proper sequence.  The accounts (all normal balances) were taken from the ledger of Sophie Designs Co. on April 30, 2010. 

Accounts Payable

$ 4,100

 

Rent Expense

$11,500

Accounts Receivable

3,450

 

Salary Expense

14,000

Cash

7,375

 

Fees Earned

54,100

Capital Stock

10,000

 

Supplies

3,125

Dividends

5,500

 

Supplies Expense

1,700

Equipment

24,500

 

Utilities Expense

4,000

Miscellaneous Expense

850

 

Retained Earnings

7,800

 

 

 

 

 

 

 

 

223. Exhibit 2-1All nine transactions for Ralston Sports Co. for September 2011, the first month of operations, are recorded in the following T accounts: 

Cash

 

Capital Stock

(1)

25,000 

(3)

12,500

 

 

 

(1)

25,000

(7)

11,900 

(5)

7,600

 

 

 

 

 

(9)

9,700 

(6)

10,500

 

 

 

 

 

 

 

(8)

7,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts Receivable

 

Dividends

(4)

9,900 

(9)

9,700

 

(8)

7,000 

 

 

 

 

 

 

 

 

 

 

 

 

Supplies

 

Fees Earned

(3)

12,500

 

 

 

 

 

(4)

9,900

 

 

 

 

 

 

 

(7)

11,900

 

 

 

 

 

 

 

 

 

 

Equipment

 

Operating Expenses

(2)

9,500

 

 

 

(6)

10,500

 

 

 

 

 

 

 

 

 

 

 

 

Accounts Payable

 

 

(5)

7,600

(2)

9,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Refer to Exhibit 2-1.  Prepare a trial balance, listing the accounts in their proper order. 

 

 

224. 

(a)

List the errors in the following trial balance. All accounts have normal balances.

(b)

What would be the new totals of the trial balance after errors are corrected? What would be the balance of Accounts Receivable?

 

 

 

Winslow’s Auto BodyTrial BalanceFor Month Ending April 30, 2011

Cash

 

19,475

Accounts Receivable

?

 

Supplies

 

1,000

Equipment

15,000

 

Prepaid Insurance

 

500

Accounts Payable

 

2,500

Capital Stock

5,000

 

Retained Earnings

12,000

 

Dividends

 

1,000

Fees Earned

 

49,600

Salary Expense

14,500

 

Rent Expense

 

9,000

Utilities Expense

1,400

 

Supplies Expense

3,900

 

Miscellaneous Expense

     250

          

 

55,000

81,575

 

 

 

 

 

 

225. Answer the following questions for each of the errors listed below, considered individually: 

(a)

Did the error cause the trial balance totals to be unequal?

(b)

What is the amount of the difference between the trial balance totals (where applicable)?

(c)

Which of the trial balance totals, debit or credit, is the larger (where applicable)?

 

 

Present your answers in columnar form, using the following headings: 

Error

Totals

Difference in Totals

Larger of Totals

(identifying number)

(equal or unequal)

(amount)

(debit or credit)

 

 

 

 

Errors:

(1)

A dividend of $3,000 cash paid to the company’s owner and only stockholder was recorded by a debit of $3,000 to Salary Expense and a credit of $3,000 to Cash.

(2)

A $650 purchase of supplies on account was recorded as a debit of $1,650 to Equipment and a credit of $1,650 to Accounts Payable.

(3)

A purchase of equipment for $3,450 on account was not recorded.

(4)

A $870 receipt on account was recorded as a $870 debit to Cash and a $780 credit to Accounts Receivable.

(5)

A payment of $1,530 cash on account was recorded only as a credit to Cash.

(6)

Cash sales of $8,500 were recorded as a credit of $8,500 to Cash and a credit of $8,500 to Fees Earned.

(7)

The debit to record a $4,000 cash receipt on account was posted twice; the credit was posted once.

(8)

The credit to record a $300 cash payment on account was posted twice; the debit was posted once.

(9)

The debit balance of $7,400 in Accounts Receivable was recorded in the trial balance as a debit of $7,200.