The accountant for E-Z Laundry prepared the following unadjusted and adjusted trial balances. Assume that all balances
Question:
The accountant for E-Z Laundry prepared the following unadjusted and adjusted trial balances. Assume that all balances in the unadjusted trial balance and the amounts of the adjustments are correct. Identify the errors in the accountant??s adjusting entries assuming that none of the accounts were affected by more than one adjusting entry.
E-Z Laundry Trial Balance July 31, 2012 Adjusted Unadjusted Debit Credit Balances Balances Debit Credit Balances Balances Cash 7,500 7,500 22,000 5,500 Accounts Receivable. 18,250 Laundry Supplies. Prepaid Insurance* Laundry Equipment Accumulated Depreciation-Laundry Equipment.. Accounts Payable . Wages Payable.. Capital Stock.. Retained Earnings. 3,750 5,200 1,400 190,000 184,000 48,000 48,000 9,600 9,600 1,200 40,000 40,000 70,300 70,300 Dividends.... 28,775 28,775 Laundry Revenue. Wages Expense Rent Expense . Utilities Expense 182,100 182,100 49,200 49,200 25,575 25,575 18,500 18,500 6,000 1,750 Depreciation Expense Laundry Supplies Expense Insurance Expense Miscellaneous Expense 800 3,250 3,250 350,000 350,000 354,250 351,200
Step by Step Answer:
1 The accountant debited Accounts Receivable for 3750 but did not credit Laundry Revenue This adjust...View the full answer
Financial and Managerial Accounting Using Excel for Success
ISBN: 978-1111993979
1st edition
Authors: James Reeve, Carl S. Warren, Jonathan Duchac
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A trial balance is a list of all the general ledger accounts contained in the ledger of a business. This list will contain the name of each nominal ledger account and the value of that nominal ledger balance. Each nominal ledger account will hold either a debit balance or a credit balance
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