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.
