Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On December 31, the balances in the General Ledger accounts of Pancho Company resulted in the following totals: Assets =$517,600Liabilities = $323,400Equity = $200,500 Total

On December 31, the balances in the General Ledger accounts of Pancho Company resulted in the following totals:

Assets =$517,600Liabilities = $323,400Equity = $200,500

Total assets do not equal total liabilities plus equity because the following errors were made:

Supplies of $500 were on hand but were not included in assets because all purchases were debited to Supplies Expense.

Credit services revenue of $15,700 were posted to the Services Revenue account as $17,500. The Accounts Receivable account was posted correctly.

Equipment purchased on credit for $51,600 was incorrectly posted to Notes Payable as $56,100. No error was made in the Equipment account.

Find the correct balances in the asset, liability, equity accounts.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Ethical Obligations and Decision Making in Accounting Text and Cases

Authors: Steven M. Mintz, Roselyn E. Morris

5th edition

1259969460, 73403997, 1260480852, 978-1259969461

More Books

Students also viewed these Accounting questions

Question

Define Management or What is Management?

Answered: 1 week ago

Question

What do you understand by MBO?

Answered: 1 week ago

Question

What is meant by planning or define planning?

Answered: 1 week ago

Question

Define span of management or define span of control ?

Answered: 1 week ago

Question

The fear of making a fool of oneself

Answered: 1 week ago

Question

Annoyance about a statement that has been made by somebody

Answered: 1 week ago