Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Vathsala Corporation reports the following adjusted account balances, shown in alphabetical order, at the end of its fiscal year, February 28, 2020: Accounts payable

1. Vathsala Corporation reports the following adjusted account balances, shown in alphabetical order, at the end of its fiscal year, February 28, 2020: Accounts payable Accounts receivable Accumulated depreciation-equipment 5,400 Cash Common shares Depreciation expense Dividends declared Equipment Fees earned Income tax expense $13,000 Income tax payable $4,550 28,000 Insurance expense 3,500 Prepaid insurance 2,500 18,000 Rent expense 6,000 10,000 Retained earnings 21,000 4,400 Salaries payable 3,000 2,000 Salaries expense 46,400 23,450 Supplies 1,000 89,500 Supplies expense 4,000 4,800 Utilities expense 2,400 Prepare an adjusted trial balance at February 28. 2. Different types of posting errors are identified below: a. A $1,200 debit to Supplies was posted as a $2,100 debit. b. A $1,000 credit to Cash was posted twice as two credits to Cash. c. A $5,000 debit to Dividends Declared was posted to the Common Shares account. d. A journal entry debiting Cash and crediting Service Revenue for $2,500 was not posted. e. The collection of $500 cash on account was posted as a debit of $500 to Cash and a credit of $500 to Accounts Payable. f. The payment of $1,000 on an account payable owed to the insurance company was posted as a debit to the Insurance Expense account. No credit was posted. For each of the above errors, indicate (a) whether the trial balance will balance (yes or no), (b) the amount of the difference if the trial balance will not balance, and (c) the trial balance column (debit or credit) that will have the larger total. Consider each error separately. Use the following format, in which the first error is given as an example: a. (a) Error In Balance No (b) Difference $900 (c) Larger Column Total Debit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Double Entry Exercises 40 Full Cycle Accounting Cases With Solutions

Authors: L Castelluzzo

1st Edition

1731173954, 978-1731173959

More Books

Students also viewed these Accounting questions

Question

Suppose P(C) = 1/4 and P(D |C) = 4/5. Find P(C & D).

Answered: 1 week ago