Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Analyzing Transactions7 he accountant records a payment of $1,600 for prepaid expenses as a debit to Prepaid Expenses for $16,000 and a credit to Cash

image text in transcribed
Analyzing Transactions7 he accountant records a payment of $1,600 for prepaid expenses as a debit to Prepaid Expenses for $16,000 and a credit to Cash for $16,000. The correct amount is $1,600. 25. Determine the effect, if any, of the following errors on the unadjusted trial balance. To record the expense for wages, the company's books show a debit to Wages Expense for $3,200 and a credit to Cash for $2,300 b. When preparing the purchase of inventory, the accountant debited Inventory for $205 and credited Accounts Payable for $2,050. c. 26. Will the following errors cause debits or credits to be higher on the unadjusted trial balance? If so, by how much? a. When preparing the journal entry to record the purchase of land and a building the accountant debited Land for $12,000, Cash for $25,000, and credited Building for $13,000. The accountant accidentally credited Rental Revenue for $1,300 rather than Interest Revenue when showing the cash received for interest on securities The company's books show a debit of $4,500 to Accounts Receivable and a credit to Sales for $450. b. c. 27. What is the dollar effect on the company's unadjusted trial balance from the following errors? a. A debit to Equipment for $4,000 and a credit to Notes Payable for $400 A debit to Wages Expense for $450, Supplies Expense for $220, Utilities Expense for $550, and a credit to Cash for $1,270. b. c. A debit to Cash for $525 and a credit to Sales for $255 28. Prepare the journal entry to correct an error for a journal entry showing a debit to Inventory and credit to Accounts Payable for $1,400. The company actually paid for the purchase with cash. 29. When recording the journal entry for the purchase of new equipment for $5,500, the accountant made a debit to Land for $5,500. Prepare the journal entry to correct the error 30. To record newly issued long-term debt of $2,750, the company's accountant credited Accounts Payable instead. Prepare the journal entry to correct the error

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

Winning Your Audit

Authors: Holmes F. Crouch

1st Edition

0945339151, 978-0945339151

More Books

Students also viewed these Accounting questions