Identify any errors in the journal entries for the following transactions:

1.The company purchased supplies for $400.

2.The company purchased inventory for $2,300 on account.

3.The company prepaid $10,000 for six-months rent to the building landlord.

4.The company borrowed $40,000 from US Bank.

5.The company provided services for $8,000, on account.

6.The company paid $7,000 for last months office rent.

Address the following questions:

1.Between journalizing and posting, which step changes the balance of an account? Explain.

2.What are some key differences between each of three trial balances?

Posting to the ledger

(T-Accounts)

Preparing a Unadjusted Trial Balance #1

Adjustments for accruals and deferrals

Preparing an Adjusted Trial Balance #2

Prepare Financial Statements

Closing Temporary Account

Preparing a Post-Closing Trial Balance #3

Analyzing & Recording

1.Review balance sheet and critique the presentation of the information on the report.

Assets			Liabilities
Cash		49,000	Accounts receivable		20,000
Accounts payable		15,000	Wages payable		4,000
Supplies		5,000			24,000
Equipment		50,000	Stockholders' Equity
			Common Stock		50,000
			Retained earnings		40,000
			Revenue		45,000
			Expenses		(30,000)
			Total S/H Equity		105,000
Total Assets		119,000	Total Liab. & S/H Equity		129,000