Question :
188. The balances for the accounts of Lance’s Consulting Firm, Inc. : 1256652
188. The balances for the accounts of Lance’s Consulting Firm, Inc. for the year ended December 31 are shown below. Each account shown had a normal balance.
Accounts payable$ 6,400Wages expense$35,000
Accounts receivable 7,000Rent expense 5,000
Cash 10,000Retained earnings 68,700
Office supplies 1,000Land 53,000
Building 99,000Unearned revenue 7,000
Supplies expense 15,000Dividends 20,000
Consulting revenue 150,000Common stock 12,900
Calculate net income.
189. The balances for the accounts of Lance’s Consulting Firm, Inc. for the year ended December 31 are shown below. Each account shown had a normal balance.
Accounts payable$ 6,400Wages expense$35,000
Accounts receivable 7,000Rent expense 5,000
Cash 10,000Retained earnings 68,700
Office supplies 1,000Land 53,000
Building 99,000Unearned revenue 7,000
Supplies expense 15,000Dividends 20,000
Consulting revenue 150,000Common stock 12,900
Calculate ending retained earnings.
190. The balances for the accounts of Lance’s Consulting Firm, Inc. for the year ended December 31 are shown below. Each account shown had a normal balance.
Accounts payable$ 6,400Wages expense$35,000
Accounts receivable 7,000Rent expense 5,000
Cash 10,000Retained earnings 68,700
Office supplies 1,000Land 53,000
Building 99,000Unearned revenue 7,000
Supplies expense 15,000Dividends 20,000
Consulting revenue 150,000Common stock 12,900
Calculate total assets.
191. The balances for the accounts of Lance’s Consulting Firm, Inc. for the year ended December 31 are shown below. Each account shown had a normal balance.
Accounts payable$ 6,400Wages expense$35,000
Accounts receivable 7,000Rent expense 5,000
Cash 10,000Retained earnings 68,700
Office supplies 1,000Land 53,000
Building 99,000Unearned revenue 7,000
Supplies expense 15,000Dividends 20,000
Consulting revenue 150,000Common stock 12,900
Calculate thedebt ratio.
192. At year-end, Harris Cleaning Service noted the following errors in its trial balance:
1. It understated the total debits to the Cash account by $500 when computing the account
balance.
2. A credit sale for $311 was recorded as a credit to the revenue account, but the offsetting
debit was not posted.
3. A cash payment to a creditor for $2,600 was never recorded.
4. The $680 balance of the Prepaid Insurance account was listed in the credit column of the
trial balance.
5. A $24,900 truck purchase for cash was recorded as a $24,090 debit to Vehicles and a
$24,090 credit to Notes Payable.
6. A purchase of office supplies for $150 was recorded as a debit to Office Equipment. The
offsetting credit entry was correct.
7. An additional investment of $4,000 by Del Harris was recorded as a debit to Common
Stock and as a credit to Cash.
8. The cash payment of the $510 utility bill for December was recorded (but not paid) twice.
9. A revenue account balance of $79,817 was listed on the trial balance as $97,817.
10. A $1,000 cash dividend was recorded as a $100 debit to Dividends and $100 credit to cash.
Using the form below, indicate whether each error would cause the trial balance to be out of balance, the amount of any imbalance and whether a correcting journal entry is required.
Would the error cause the trial balance to be out of balance?
Correcting Journal Entry Required
Error
Yes
No
Amount of Imbalance
Yes
No
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