Question
Need help with these problems for my accounting class work! Trial Balance: Correct The Trial Balance: Unequal Totals was prepared by the intern. The intern
Need help with these problems for my accounting class work!
- Trial Balance: Correct
The Trial Balance: Unequal Totals was prepared by the intern. The intern is puzzled by the unequal totals. Prepare a corrected trial balance. If an amount box does not require an entry, leave it blank.
KL Company Inc. Unadjusted Trial Balance March 31, 2013 | |||
Account Title | Debit Balances | Credit Balances | |
Cash | 19,875 | ||
Accounts Receivable | 4,000 | ||
Supplies | 1,675 | ||
Office Equipment | 18,500 | ||
Accounts Payable | 1,425 | ||
Notes Payable | 18,500 | ||
Common Stock | 13,000 | ||
Retained Earnings | 1,425 | ||
Dividends |
| ||
Fees Earned | 17,300 | ||
Rent Expense | 2,300 | ||
Wages Expense |
| ||
51,650 | 51,650 |
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Accounting Equation
The intern 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 |
$ | = | $ | + | $ |
Still puzzled, the intern asks "Why do none of the amounts in the accounting equation equal the totals on the trial balance?"
a. | 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. |
b. | 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. |
c. | You point out the total of the assets, liabilities and stockholders equity is equal to the sum of the debit and credit totals on the trial balance. |
d. | 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. |
e. | The accounts that make up the total for stockholders equity have a mix of debit and credit balances. |
a, b and c?
b, c, and d?
c, d, and e?
a, b, and e?
a ,d, and e?
The Tall Balancer unequal Tocals was prepared by the micem. The mem 15 puzzieu Dy the unequal tocais. Prepare a corrected trial baranice. I al amount vox poes TOL require an enly Teave it viralik. KL Company Inc. Unadjusted Trial Balance March 31, 20Y3 Account Title Debit Balances Credit Balances Cash 19,875 Accounts Receivable 4,000 Supplies 1,675 Office Equipment 18,500 Accounts Payable 1,425 Notes Payable 18,500 Common Stock 13,000 Retained Earnings 1,425 Dividends 1,925 Fees Earned 17,300 Rent Expense Wages Expense 2,300 3,375 51,650 51,650 Errors on 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 table, select the accounts for each type of error. Not all accounts contain errors. Error Type Accounts Receivable Office Equipment Accounts Payable Notes Payable Common Stock Retained Earnings Fees Earned Cash Supplies Dividends Transposition Incorrectly reported as a debit Incorrectly reported as a credit Balance computed incorrectly Check My Work Email Instructor Save and Exit Submit Assignment for GradingStep by Step Solution
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