Arthur started a new business on 1 January 20X9. You are supplied with the following nominal ledger
Question:
Arthur started a new business on 1 January 20X9. You are supplied with the following nominal ledger accounts, which have been closed off and a trial balance extracted. These are Arthur’s only transactions in this period.
Trial balance for Arthur as at 10 January 20X9:
The trial balance should balance.
There are seven errors (six are double-entry errors, the other is a description error).
Required
a. Describe the entries required to correct the errors.
b. Redraft the amended ledger accounts and trial balance as at 10 January 20X9.
Cash account Date Details £ Date Details £ Date 80 6 Jan Sales 100 9 Jan H&L 8 Jan Sales 89 189 11 Jan Bal b/d 119 10 Jan Bal c/d Capital introduced account Date Details £ Date 1 Jan 10 Jan Cap a/c 100 100 119 189 Details £ Bank 1,000 100 Date 1 Jan. 10 Jan Sales revenue account 10 Jan P/L a/c 11 Jan Details £ Date 6 Jan 8 Jan 10 Jan 327 327 Bank account Details £ Date Cap int. 1,000 2 Jan Sales 192 3 Jan Bal b/d 1,192 742 10 Jan Details £ Cash 100 Cash 98 Bank 129 Details H&L Van Bal c/d 327 £ 50 500 742 1,192
Step by Step Answer:
Solution a The entries entails writing the transactions from the tria...View the full answer
Introduction To Financial Accounting
ISBN: 9781526803009
9th Edition
Authors: Anne Marie Ward, Andrew Thomas
Related Video
A trial balance is a list of all the general ledger accounts contained in the ledger of a business. This list will contain the name of each nominal ledger account and the value of that nominal ledger balance. Each nominal ledger account will hold either a debit balance or a credit balance
Students also viewed these Business questions
-
Arthur started a new business on 1 January 20X3. You are supplied with the following nominal ledger accounts, which have been closed off and a trial balance extracted. These are Arthur's only...
-
On January 1, 2014, Bev Horricks started a new business called Dance-A-Lot. Near the end of the year, she hired a new bookkeeper without making a careful reference check. As a result, a number of...
-
On January 1, 2017, Paula Fernandes started a new business called Wicked Dance. Near the end of the year, she hired a new bookkeeper without checking references or requesting an academic transcript....
-
Describe how price variances create incentives to build inventories.
-
What are some of the needed skills for leaders/managers to be effective? What are the three major characteristics of these skills?
-
During an audit of Potter Company, an auditor needs to estimate the total value of the 5,000 invoices processed during June. The auditor estimates the standard deviation of the population to be $30....
-
What is the monetary unit assumption? What impact does inflation have on the monetary unit assumption?
-
In Problems 5-17 and 5-18, three different fore-casts were developed for the demand for fertilizer. These three forecasts are a 3-year moving average, a weighted moving average, and a trend line....
-
ABC Company's budgeted sales for June, July, and August are 1 4 , 4 0 0 , 1 8 , 4 0 0 , and 1 6 , 4 0 0 units respectively. The following cost behavior patterns are budgeted for ABC Company's...
-
Brothers Mike and Tim Hargenrater began operations of their tool and die shop (H & H Tool, Inc.) on January 1, 2019. The annual reporting period ends December 31. The trial balance on January 1,...
-
A trial balance failed to agree. On investigation the following errors were found: a. Wages of 250 have been credited in the cash account but no other entry has been made. b. The credit side of the...
-
The following is the cash book of T. Trading for the month of September 20X9: The following is the bank statement received for T. Trading for the month of September 20X9: Required Prepare the bank...
-
Solve for the unknown number of years in each of the following: Present Value Years Interest Rate Future Value 625 810 16,500 21,500 7% 12 17 $ 1,284 4.341 402,662 47,350
-
Burnham Electric (BE) owed Estimated warranty payable of \($1,500\) at the end of 2011. During 2012, BE made sales of \($100,000\) and expects product warranties to cost the company 6% of the sales....
-
On January 1, 2011, you borrowed \($14,000\) on a five-year, 9% note payable. At December 31, 2012, you should record: a. Note receivable of $14,000 b. Cash payment of $14,000 c. Interest payable of...
-
Known liabilities of uncertain amounts are a. Ignored (Record them when paid.) b. Reported on the balance sheet c. Contingent liabilities d. Reported only in the notes to the financial statements
-
In 2016, Apple launched the latest version of its iPhone, the iPhone 7. Unlike previous versions, this new phone came without a socket for headphones. Needless to say, Apple had a solution for this...
-
There is no shortage of people, both economists and non-economists, who are keen to highlight how the standard theory as outlined in the first part of this chapter is dead and should be consigned to...
-
Differentiate a progressive tax system from a proportional and a regressive system and give examples of each.
-
How can you tell from the vertex form y = a(x - h) 2 + k whether a quadratic function has no real zeros?
-
A 2009 survey by Clemson University researchers examined the ethics concerns of chief executive officers of 300 large- and mid-sized corporations in the United States. Their number one concern was...
-
This and similar problems in each succeeding chapter focus on the financial statements of Starbucks Corporation. Starbucks is a worldwide retailer of specialty coffees. As you solve each of these...
-
Locate the Cisco annual report. Do this by searching for Cisco Systems, clicking Investor Relations under About Cisco, and opening Annual Reports under the Financial Reporting tab. Then click Open...
-
E 2 - 4 ( Algo ) Determining Financial Statement Effects of Several Transactions LO 2 - 3 The following events occurred for Johnson Company: a . Received investment of cash by organizers and...
-
ANSWER THIS FAST AND CLEAR TY
-
Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 1 5 , 5 0 0 units. \ table [ [ \ table [ [ PHOENIX COMPANY ] , [ Fixed Budget ] , [ For...
Study smarter with the SolutionInn App