CPA Consultancy Services Company commenced its operations on January 3, 2020. After one year, its trial...

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CPA Consultancy Services Company commenced its operations on January 3, 2020. After one year, its trial balance is as follows: Debit Cash Accounts receivables Supplies on hand Equipment Building Land Accounts payable Notes payable Capital Drawings Service Revenue Salaries expense Transportation expense Insurance expense Utilities expense . . . 252,000 166,000 87,000 200,000 1,000,000 1,200,000 . 65,000 180,000 80,000 150,000 85,000 3,465,000 Total 3,461,000 The company asked for your help as to reconstruct its trial balance. You discovered the following errors: . recorded a payment for transportation amounting to P10,000 twice failed to record a collection of accounts receivable, P20,000 Credit 309,000 700,000 1,510,000.0 897,000 an entry to record payment of accounts payable amounting to P10,000 was debit to accounts payable P10,000 and credit cash P1,000. Required: Prepare the correct trial balance. the journal entry to record billing of customer for P44,000 was correct, however posting this transaction to service revenue account was understated by P4,000 payment of insurance was recorded as debit cash P9,000 and credit insurance expense P9,000 the entry to record payment of utilities for P15,000 was recorded as debit Drawings P15,000 and credit cash P15,000 an error as to footing the trial balance is also present CPA Consultancy Services Company commenced its operations on January 3, 2020. After one year, its trial balance is as follows: Debit Cash Accounts receivables Supplies on hand Equipment Building Land Accounts payable Notes payable Capital Drawings Service Revenue Salaries expense Transportation expense Insurance expense Utilities expense . . . 252,000 166,000 87,000 200,000 1,000,000 1,200,000 . 65,000 180,000 80,000 150,000 85,000 3,465,000 Total 3,461,000 The company asked for your help as to reconstruct its trial balance. You discovered the following errors: . recorded a payment for transportation amounting to P10,000 twice failed to record a collection of accounts receivable, P20,000 Credit 309,000 700,000 1,510,000.0 897,000 an entry to record payment of accounts payable amounting to P10,000 was debit to accounts payable P10,000 and credit cash P1,000. Required: Prepare the correct trial balance. the journal entry to record billing of customer for P44,000 was correct, however posting this transaction to service revenue account was understated by P4,000 payment of insurance was recorded as debit cash P9,000 and credit insurance expense P9,000 the entry to record payment of utilities for P15,000 was recorded as debit Drawings P15,000 and credit cash P15,000 an error as to footing the trial balance is also present

Answer rating: 100% (QA)

To prepare the correct trial balance we need to correct the errors mentioned and update the account balances accordingly Lets go through each error an... View the full answer