Multi-part problem

Mastery Problem: Analyzing Transactions Transactions A Trial Balance: Correct Errors In Trial Balance Accounting Equation KL Company Inc. In February, Katie Long formed KL Company Inc. Transactions for the month of March have been posted to the accounts. An intern has prepared a trial balance from the Taccounts, but there seem to be some errors. Required: 1. In the Transactions panel, descriptions of the transactions for the month of March are provided. Each of the transactions in the Transactions panel has been posted to the accounts. Referring to the accounts, select the date on which each transaction occurred, enter the amount of the transaction and select the account to debt and credit 2. The trial balance prepared by the intern can be found in the Trial Balance Unequal Totals panel. The intern is puzzled by the unequal totals Prepare a corrected trial balance on the Thal Balance: Correct panel 3. Compare the trial balance prepared by the intern (Trial Balance: Unequal Totals) to the trial balance that you prepared (Thal Balance: Correct) Use the table provided in the Errors in Trial Balance panel to select the accounts for each type of error 4. The inter is puzzled and asks "Are you sure the accounting equation is stw in balance?" Using the corrected trial balance you prepared prove that the accounting equation is in balance. S buzzed, the inter asks 'Why do none of the amounts in the accounting equation equal the totals on the trial balance? Explain Calculator T accounts Cash Bal. 8,000.00 3/3 2,300.00 3/25 7,650.00 3/27 1,250.00 3/28 5,000.00 3/29 3,375.00 3/30 8,125.00 3/31 1,925.00 Accounts Receivable Bal. 1.950.00 3/18 10,100.00 3/30 8.125.00 Supplies Bal 225.00 3/7 1.500.00 Office Equipment 3/2 17,000.00 Accounts Payable 3/27 1.250.00 Bal. 1,250.00 317 1,500.00 Notes Payable 3/2 17,000.00 Common Stock Bal 7.500.00 3/28 5 000.00 Retained Earnings Retained Eamings Bal. 1,425.00 Dividends 3/31 1,925.00 Fees Earned 3/18 10,100.00 3/25 7,650.00 Rent Expense 3/3 2,300.00 Wages Expense 3/29 3.375.00 Descriptions of the transactions for the month of March are provided in the following table. Each of the transactions that follow has been posted to the accounts Referring to the accounts, select the date on which each transaction occurred, enter the amount of the transaction, and select the account to debit and credit Date Amount Debit Credit Transaction KL Company Inc. paid dividends to its stockholders $ Received cash from customers on account KL Company Inc. issued additional shares of common stock in exchange for cash Paid creditors on account >> Paid rent for April S Received cash for fees earned $ Paid wages Purchased supplies on account. Recorded fees earned on account s S Purchased equipment, giving a note payable for the purchase price Wping Lessons Be Wigan State CSU AOOns -oues Howell Calculator KL Company Inc. UNADJUSTED TRIAL BALANCE March 31, 2017 ACCOUNT TITLE DEBIT CREDIT 1 Cash 24,525.00 2 Accounts Receivable 3,925.00 1.725.00 3 Supplies + Office Equipment 17,000.00 5 Accounts Payable 1.500.00 6 Notes Payable 17.000.00 7 Common Stock 12,500.00 3 Retained Earnings 1.425.00 9. Dividends 1,925.00 10 Fees Earned 10.100,00 11 Rent Expense 3,200.00 12 Wages Expense 3,375.00 15 Totals 49.375.00 48.825.00 Typing Lessons Be... Michigan State Uni... Vet To GVSU Admissions Houses is Howell, H.. MyVeteransUnited Calculator The trial balance prepared by the intem can be found in the Trial Balance: Unequal Totals panel. The intern is puzzled by the unequal totals. Prepare a corrected trial balance KL Company Inc. UNADJUSTED TRIAL BALANCE March 31, 2017 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Accounts Receivable 3 Supplies Office Equipment Accounts Payable Notes Payable Common Stock Retained Earnings Dividends 10 Fees Earned 11 Rent Expense vel OVSU Admissions Houses is How 1 Critical Thinking Problem Calculator Calculator 11 Rent Expense 12 Wages Expense 13 Totals Errors In Trial Balance Compare the trial balance prepared by the intern (Trial Balance: Unequal Totals) to the trial balance that you prepared (Trial Balance: Correct). In the following fable, selec for each type of error Not all accounts contain errors Accounts Receivable Accounts Payable Office Equipment Notes Payable Common Stock Retained Earnings Fees Earned Rent Expense W EXE Error Type Cash Supplies Dividends Transposition 0 Incorrectly reported as a O debit Incorrectly reported as a credit Balance Incorrectly reported as a O credit Balance computed incorrectly 0 0 0 Accounting Equation The inter is puzzled and asks "Are you sure the accounting equation is still in balance?" Using the corrected trial balance you prepared prove that the accounting equation is in balance Assets Liabilities Stockholders' Equity S Still puzzled, the intern asks "Why do none of the amounts in the accounting equation equal the totals on the trial balance? Check all that apply The accounts with debit balances are not all classified in the same element of the accounting equation. For example, not all accounts with debit balances are assets Critical Thinking Problem Calculator Calculator Accounting Equation The intern is puzzled and asks "Are you sure the accounting equation is sti in balance?" Using the corrected trial balance you prepared, prove that the accounting equation is in balance Assets Liabilities Stockholders' Equity $ $ Still puzzled, the intern asks Why do none of the amounts in the accounting equation equal the totals on the trial balance? Check all that apply. the same element of the accounting equation. For example, not all accounts with debit The accounts with debit balances are not all classified balances are assets This is because the revenue and expense accounts are part of the stockholders' equity element. The accounts with debit balances should be part of the total assets The accounts with credit balances are not all classified in the same element of the accounting equation. For example, not all accounts with credit balances are liabilities You point out the total of the assets, liabilities and stockholders equity is equal to the sum of the debit and credit totals in the trial balance The accounts that make up the total for stockholders' equity have a mix of debit and credit balances