Question
PART ONE: The accounts in the ledger of Hickory Furniture Company as of December 31, 2016, are listed in alphabetical order as follows. All accounts
PART ONE: The accounts in the ledger of Hickory Furniture Company as of December 31, 2016, are listed in alphabetical order as follows. All accounts have normal balances. The balance of the cash account has been intentionally omitted. I AM MISSING CASH (DEBIT) and Debit TOTAL---only
Accounts Payable $ 42,880
Notes Payable $ 41,000
Accounts Receivable 115,430
Prepaid Insurance 20,400
Cash ?
Rent Expense 45,000
Common Stock 15,000
Retained Earnings 51,000
Dividends 22,500
Supplies 4,940
Fees Earned 746,050
Supplies Expense 6,070
Insurance Expense 3,100
Unearned Rent 13,200
Land 41,000
Utilities Expense 26,840
Miscellaneous Expense 9,900
Wages Expense 572,100
Prepare an unadjusted trial balance and insert the missing figure for cash.
ACCOUNT TITLE | DEBIT | CREDIT | |
---|---|---|---|
1 | Cash | | |
2 | Accounts Receivable | | |
3 | Supplies | | |
4 | Prepaid insurance | | |
5 | Land | | |
6 | Accounts Payable | | |
7 | Unearned Rent | | |
8 | Notes Payable | | |
9 | Common Stock | | |
10 | Retained Earnings | | |
11 | Dividends | | |
12 | Fees Earned | | |
13 | Wages Expense | | |
14 | Rent Expense | | |
15 | Utilities Expense | | |
16 | Supplies Expense | | |
17 | Insurance Expense | | |
18 | Miscellaneous Expense | | |
19 | Totals | | |
PART TWO:
On July 24, it was discovered that the following errors took place in journalizing and posting transactions:
a. | Cash of $8,100 received on account was recorded as a debit to Fees Earned and a credit to Cash. |
b. | A $1,560 purchase of supplies for cash was recorded as a debit to Supplies Expense and a credit to Accounts Payable. |
Journalize the entries on July 24 to correct the errors. Use two transactions to correct the error described in b. (That is, record an entry to reverse the incorrect entry and a second entry to record the correct entry.) Refer to the Chart of Accounts for exact wording of account titles.
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | |
---|---|---|---|---|---|
1 | | | | XXXX | |
2 | | | | | |
3 | | | | | |
4 | | | | | |
5 | | XXXX | | XXX | |
6 | | XXXX | | | |
7 | | XXXX | | | |
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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