Question
Each of the listed accounts should have a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors.
Each of the listed accounts should have a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors.
- Cash received from a customer on account was debited for $570, and Accounts Receivable was credited for the same amount. The actual collection was for $750.
**I debited Cash & credited A/R but I'm not sure how to calculate the amounts. **
- The purchase of a computer printer on account for $649was recorded as a debit to Supplies for $649and a credit to Accounts Payable for $649.
** I debited supplies and credited A/P but not sure who to calculate the right amount **
- Services were performed on account for a client for $890. Accounts Receivable was debited for $890and Service Revenue was credited for $89.
** I'm not sure why A/R shouldn't be debited since the service was performed on account - unless it was meant to be debited from Unearned Service Revenue? **
- A payment of $214for telephone charges was recorded as a debit to Office Expense for $214and a debit to Cash for $214.
** I debited expenses from Office Expense and got that correct, however I when I debited the cash account that was incorrect. Could it mean that I would credit Owner's Capital? Nothing was said it was paid on account, so I assumed it would be cash? ***
- When the Unearned Service Revenue account was reviewed, it was found that service revenue amounting to $474 was performed prior to June 30 (related to Unearned Service Revenue).
** I'm lost on how to journalize this one ***
- A debit posting to Salaries and Wages Expense of $819was omitted.
** Should I not logg this? **
- A payment on account for $206was credited to Cash for $206and credited to Accounts Payable for $260.
** Shouldn't this be a debit to A/P and a credit to cash? **
- A dividend of $724was debited to Salaries and Wages Expense for $724and credited to Cash for $724.
** I debited the Dividends account, but got it incorrect when I tried crediting cash and owner's captial accounts.
Correct the trial balance.
I need assistance calculating the totals.
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