QUESTIONS 1 : 1 - what is accounting? Explain in details. (2 points) 2- What is the assumptions which are applied by GAAP? (1 points) 3-(2 points) The trial balance or Robbie Gould Cashewn below do not tralance ROBBIE GOULD CO. Trial Balance June 30, 2012 5 3340 5212 1.2 2.000 Cash Accounts Receivable Equipment Accounts Payable Uncanned Service Rovence Owner Drawing Service Reven Salarland Wapens Supplies Open 5126 Each of the listed accounts has a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors 1. Cash received from a customer in payment of its account was debited for $580, and Accounts Receivable was credited for the same amount. The actual collection was for $850, 2. The purchase of a computer on account for $710 was recorded as a debit to Supplies for $710 and a credit to Accounts Payable for $710. 2. Services were performed on account for a client for $980. Accounts Receivable was debited for 5980, and Service Revenue was credited for $98. 4. A debit posting to Salaries and Wages Expense of $700 was omitted. 5. A payment of a balance due for $306 was credited to Cash for $306 and credited to Accounts Payable for $360 6. The withdrawal of $600 cash for Gould's personal use was debited to Salaries and Wapes Expense for $600 and credited to Cash for $600 Instructions Prepare a correct trial balance. (Hint It helps to prepare the correct journal entry for the transac- tion described and compare it to the mistake made.) 1 QUESTIONS 1 : 1- what is accounting? Explain in details. (2 points) 2- What is the assumptions which are applied by GAAP? (1 points) 3-(2 points) The trial balance of Robbie Gould Co shown below does not balance. ROBBIE GOULD CO. Trial Balance June 30, 2012 SLO $ 2.12 1.20) 2.000 Cash Accounts Receivable Supplies Equipment Accounts Payable Unearned Service Revenue Owner's Capital Owner's Drawing Service Revenue Salaries and Wagen Expense Supplies Een H.O 1. 100 HOO 3.2) 2.RO 7.NO Each of the listed accounts has a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors 1. Cash received from a customer in payment of its account was debited for $580, and Accounts Receivable was credited for the same amount. The actual collection was for $850. 2. The purchase of a computer on account for $710 was recorded as a debit to Supplies for $710 and a credit to Accounts Payable for $710. 3. Services were performed on account for a client for $980, Accounts Receivable was debited for $980, and Service Revenue was credited for $98. 4. A debit posting to Salaries and Wages Expense of $700 was omitted. 5. A payment of a balance due for $306 was credited to Cush for $306 and credited to Accounts Payable for $360, 6. The withdrawal of $600 cash for Gould's personal use was debited to Salaries and Wages Expense for $600 and credited to Cash for $600. Instructions Prepare a correct trial balance. (Hint: It helps to prepare the correct journal entry for the transac- tion described and compare it to the mistake made.)
