The Colby Group has the following unadjusted trial balance as of August 31, 2016: The debit and
Fantastic news! We've Found the answer you've been seeking!
Question:
The Colby Group has the following unadjusted trial balance as of August 31, 2016:
The debit and credit totals are not equal as a result of the following errors:
A. | The cash entered on the trial balance was understated by $6,000. |
B. | A cash receipt of $5,600 was posted as a debit to Cash of $6,500. |
C. | A debit of $11,000 to Accounts Receivable was not posted. |
D. | A return of $150 of defective supplies was erroneously posted as a $1,500 credit to Supplies. |
E. | An insurance policy acquired at a cost of $1,200 was posted as a credit to Prepaid Insurance. |
F. | The balance of Notes Payable was understated by $20,000. |
G. | A credit of $4,800 in Accounts Payable was overlooked when determining the balance of the account. |
H. | A debit of $7,000 for a withdrawal by the owner was posted as a credit to Terry Colby, Capital. |
I. | The balance of $58,100 in Rent Expense was entered as $51,800 in the trial balance. |
J. | Gas, Electricity, and Water Expense, with a balance of $24,150, was omitted from the trial balance. |
Required: | |
1. | Prepare a corrected unadjusted trial balance as of August 31, 2016. |
2. | Does the fact that the unadjusted trial balance in (1) is balanced mean that there are no errors in the accounts? |
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
Posted Date: