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How was 1120 derived in accounts payable? why did it become 1120. Thank you P4-17 Mr. Rolando Dominguez opened his RD Power Promotions Agency on
How was 1120 derived in accounts payable? why did it become 1120. Thank you
P4-17 Mr. Rolando Dominguez opened his RD Power Promotions Agency on January 1, 2012. His records showed the following ledger balances on December 31, 2012 Debit Credit P 9,250 P 2,600 2,700 34,400 Accounts Payable Accounts Receivable Cash Advertising Fees Earned Advertising Supplies Used Electricity Expense Gas & Water Expense Miscellaneous Expense Rent Expense Salary Expense Telephone Expense Office Equipment Dominguez, Capital Dominguez, Personal Notes Payable Totals 400 800 200 400 3,680 10,560 240 20,700 10,000 1,450 P43.330 1,660 P55,710 The following errors were discovered: a Collected and recorded an account of a customer for P500 but posted to the Accounts Receivable ledger for P5,000. 155 Chapter 4 - The Accounting Cycle of a Service Business Part 1: Journalizing. Posting and Trial Balance b. A note payable for medical equipment bought for P2,500 was posted by the accountant to the accounts payable account. c. Telephone expense recorded at P500 was not posted to the ledger. d. A debit to Dominguez, Personal for P1,750 was debited to the capital account e. Advertising Fees Earned of P500 was posted twice. f. Footing for cash on the debit side was understated by P450. & Accounts Payable paid amounting to P4,065 was posted on the credit side. h. Advertising Supplies used was copied in the trial balance on the credit side. REQUIRED: Prepare a corrected trial balance. Ronaldo Dominguez Trial Balance as on Dec 31 2012 Debit Credit 1120 Accounts Payable Accounts Receivables 7100 Cash 3150 33900 Advertising Fee earned Advertising Supplies Used Electicity Expense 400 800 200 Gas and water expense Misc. Exp. 400 Rent Exp. 3680Step by Step Solution
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