Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Trial Balance of Burlogs Colors shown below does not balance: Burlogs Colors Trial Balance May 31, 2013 Cash P5,850 Accounts Receivable P2,750 Prepaid Insurance

image text in transcribed
The Trial Balance of Burlogs Colors shown below does not balance: Burlogs Colors Trial Balance May 31, 2013 Cash P5,850 Accounts Receivable P2,750 Prepaid Insurance 700 Equipment 8,000 Accounts Payable 4,500 Unearned Service Revenue 650 Owner's Capital 11,700 Service Revenue 6,690 Salaries and Wages Expense 4,200 Advertising Expense 1,100 Insurance Expense 890 Total P26.890 P20,050 Your review of the ledger revels that each account has a normal balance. You also discover the following errors: 1. The totals of the debit sides of Prepaid Insurance, Accounts Payable and Insurance Expense were each understated by P100. 2. Transposition errors were made in Accounts Receivable and Service Revenue. Based on postings made, the correct balances were P2,750 and P6,960, respectively. 3. A debit posting to Salaries and Wages Expense for P200 was omitted. 4. A P1.000 cash drawing by the owner was debited to Owner's Capital for P1,000 and credited to Cash for P1,000. 5. A cash payment of P540 for advertising was debited to Advertising Expense for P54 and credited to Cash P54. 6. A collection from a customer for P210 was debited to Cash for P210 and credited to Accounts Payable for P210

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

Step: 3

blur-text-image

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

Corporate Financial Accounting

Authors: Carl S Warren, Jeff Jones

16th Edition

0357510380, 978-0357510384

More Books

Students also viewed these Accounting questions