Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 3 (20 Marks) The trial balance of Indah Sdn Bhd shown below does not balance. Credit 2,750 700 12,000 Indah Sdn Bhd Trial balance
Question 3 (20 Marks) The trial balance of Indah Sdn Bhd shown below does not balance. Credit 2,750 700 12,000 Indah Sdn Bhd Trial balance as at 31 May 2021 Debit Cash 3,850 Accounts Receivable Prepaid Insurance Equipment Building 30,000 Accounts Payable Unearned Service Revenue 560 Share Capital Service Revenue 8,690 Salaries and Wages Expense 4.200 Advertising Expense Utilities Expense 800 48,800 4,500 41,700 1,100 62,050 Your review of the ledger reveals that each account has a normal balance. You also discover the following errors. a) The totals of the debit sides of Prepaid Insurance, Accounts Payable, and Utilities Expense were each understated RM100. b) Transposition errors were made in Accounts Receivable and Service Revenue. Based on postings made, the correct balances were RM2,570 and RM8,960, respectively, c) A debit posting to Salaries and Wages Expense of RM200 was omitted. d) A RM1,000 cash dividend was debited to Share Capital-Ordinary for RM1,000 and credited to Cash for RM1,000. e) A RM520 purchase of supplies on account was debited to Equipment for RM520 and credited to Cash for RM520. 1) A cash payment of RM450 for advertising was debited to Advertising Expense for RM45 and credited to Cash for RM45. g) A collection from a customer for RM420 was debited to Cash for RM420 and credited to Accounts Payable for RM420. Required Prepare a correct trial balance, [20 marks
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started