Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 6 --/5 View Policies Current Attempt in Progress The following trial balance of Metlock Company does not balance. Your review of the ledger reveals

image text in transcribed
image text in transcribed
Question 6 --/5 View Policies Current Attempt in Progress The following trial balance of Metlock Company does not balance. Your review of the ledger reveals the following. (a) Each account had a normal balance. (b) The debit footings in Prepaid Insurance, Accounts Payable, and Property Tax Expense were each understated $92. (c) A transposition error was made in Accounts Receivable and Service Revenue; the correct balances for Accounts Receivable and Service Revenue are $2.640 and $6.790, respectively. (d) A debit posting to Advertising Expense of $307 was omitted. (e) A $1,370 cash drawing by the owner was debited to Owner's Capital and credited to Cash. Metlock Company Trial Balance April 30, 2020 Debit Credit Cash $4360 Accounts Receivable 2.460 Prepaid Insurance 766 Equipment $7,310 4.280 Accounts Payable Property Tax Payable Owner's Capital 10.295 Service Revenue 6,970 Salaries and Wages Expense 4281 1.110 Advertising Expense Property Tax Expense 360 $2492 $22,745 Prepare a correct trial balance Sheffield Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows SHEFFIELD RESORT TRIAL BALANCE AUGUST 31, 2020 Debit Credit $24,700 9,600 7,700 24,000 124,000 20,000 Cash Prepaid Insurance Supplies Land Buildings Equipment Accounts Payable Unearned Rent Revenue Mortgage Payable Common Stock Retained Earnings Dividends Rent Revenue Salaries and Wages Expense Utilities Expenses Maintenance and Repairs Expense $9,600 9,700 64,000 100,100 9,000 5,000 80,200 44.800 9.200 3,600 $272,600 $272,600 Other data: 1. The balance in prepaid insurance is a one-year premium paid on June 1, 2020. 2. An inventory count on August 31 shows $467 of supplies on hand. 3. Annual depreciation rates are (a) buildings (4%) (b) equipment (10%) Salvage value is estimated to be 10% of cost. 4. Unearned Rent Revenue of $3,476 was earned prior to August 31. 5. Salaries of $346 were unpaid at August 31

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Experiencing MIS

Authors: David M. Kroenke, Andrew Gemino, Peter Tingling

3rd Canadian Edition

133153932, 978-0132615662, 132615665, 978-0133153934

Students also viewed these Accounting questions