The following is the trial balance of Fullwin Company as at 31 December 2022. Dr. $...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following is the trial balance of Fullwin Company as at 31 December 2022. Dr. $ Allowance for Doubtful Debts Motor Vehicles Provision for Depreciation Capital Profit for the year Inventory Debtors Prepaid Expenses Creditors Bank Overdraft Suspense Account 9,600 6,500 1,700 180 17,980 You are required to prepare: Cr. S 170 4,000 8,000 2,500 1,800 650 860 17,980 On checking the books you find the following information and/or errors: (i) An entry in the sales journal for $380 has not been posted to the debtors account. (ii) No entry has been made in the books for $360 goods returned from a customer. (iii) A motor vehicle costing $10,000 with a written down value of $7,500 was sold for $8,500. The entry has been correctly entered in the cash book but the amount has been posted to the credit of the motor vehicles account. (iv) There was a credit balance of $400 contained in the sales ledger and a debit balance of $250 contained in the purchases ledger at 31 December 2021. (v) One customer with a balance of $820 in the sales ledger also had a balance of $200 in the purchases ledger. It has been agreed that the customer would settle for the net amount. (vi) The allowance for doubtful debts of 10% of debtors as at 31 December 2021 has been made. (vii) Interest charged on overdue customer accounts amounting to $620 has been debited to the interest expense account. All other corresponding entries have been correctly recorded. (a) All journal entries to correct the errors; (b) The suspense account; (c) The total debtors and total creditors account; and (d) A statement showing the corrected profit for the year ended 31 December 2022. The following is the trial balance of Fullwin Company as at 31 December 2022. Dr. $ Allowance for Doubtful Debts Motor Vehicles Provision for Depreciation Capital Profit for the year Inventory Debtors Prepaid Expenses Creditors Bank Overdraft Suspense Account 9,600 6,500 1,700 180 17,980 You are required to prepare: Cr. S 170 4,000 8,000 2,500 1,800 650 860 17,980 On checking the books you find the following information and/or errors: (i) An entry in the sales journal for $380 has not been posted to the debtors account. (ii) No entry has been made in the books for $360 goods returned from a customer. (iii) A motor vehicle costing $10,000 with a written down value of $7,500 was sold for $8,500. The entry has been correctly entered in the cash book but the amount has been posted to the credit of the motor vehicles account. (iv) There was a credit balance of $400 contained in the sales ledger and a debit balance of $250 contained in the purchases ledger at 31 December 2021. (v) One customer with a balance of $820 in the sales ledger also had a balance of $200 in the purchases ledger. It has been agreed that the customer would settle for the net amount. (vi) The allowance for doubtful debts of 10% of debtors as at 31 December 2021 has been made. (vii) Interest charged on overdue customer accounts amounting to $620 has been debited to the interest expense account. All other corresponding entries have been correctly recorded. (a) All journal entries to correct the errors; (b) The suspense account; (c) The total debtors and total creditors account; and (d) A statement showing the corrected profit for the year ended 31 December 2022.
Expert Answer:
Answer rating: 100% (QA)
a All journal entries to correct the errors Sales journal entry Debit Accounts Receivable 380 Credit ... View the full answer
Related Book For
Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
Students also viewed these accounting questions
-
At the end of December 2014, the following unit sales data were reported for the year: For the year ending December 31, 2015, unit sales are expected to follow the patterns established during the...
-
An ice-cream shop wants to model the relationship between ice cream sales and temperature. They collect data on temperature (in Fahrenheit) and sales (in dollars) for twenty summer days. Let x be the...
-
Waterways Corporation is preparing its budget for the coming year, 2017. The first step is to plan for the first quarter of that coming year. Waterways gathered the following information from the...
-
Given the sprinkler system layout in Figure A, calculate the flow and pressure required at point RN#1 (point B in Figure B) without considering the impact of velocity pressures. Note that RN#1 (point...
-
A feedback control system has the structure shown in Figure P2.35. Determine the closed-loop transfer function Y(s)/R(s) (a) By block diagram manipulation and (b) By using a signal-flow graph and...
-
What transferable skills can individuals trained in either game design or user experience (UX) design bring to the practice?
-
Redesign the VOCs adsorber of Example 9.15 for a breakthrough time of \(4.0 \mathrm{~h}\). The pressure drop through the bed [calculated using the Ergun equation (2-95)] should not exceed \(1.0...
-
Hiland Inc. manufactures snowsuits. Hiland is considering purchasing a new sewing machine at a cost of $2.45 million. Its existing machine was purchased five years ago at a price of $1.8 million; six...
-
The scope of a project is expanded through the formal change control process, causing the schedule to be extended beyond the original due date. This is an example of which type of influence?
-
Female Drosophila heterozygous for three recessive mutations e (ebony body), st (scarlet eyes), and ss (spineless bristles) were testcrossed, and the following progeny were obtained: (a) What...
-
Divide the following numbers in binary. Round off the results to three fractional bits. a) 10111012/ 10 b) 101101012/110 c) 1000111002/10112 d) 10100101012 / 10012
-
1. How can the corporate functions of the Board of Directors be differentiated from the corporate functions of the corporate officers? 2. What is the rationale of the law why the requirements of...
-
Year System 1 System 2 0 -$15,500 -$43,200 1 15,500 30,700 2 15,500 30,700 3 15,500 30,700 Calculate NPV. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or...
-
I need help with discussion question Corporations are obviously not biological entities. However, the law finds it necessary to provide corporations with certain rights and responsibilities commonly...
-
An electromagnetic wave has energy of 9.9410^ -20J. Determine the wavelength In which region of the electromagnetic spectrum does the radiation fall under
-
Write a program that, given a month and year, prints a calendar, such as June 2016 Su Mo Tu We Th Fr Sa 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 To find out...
-
Identify ways in which the domains of HSI are independent
-
Find the market equilibrium point for the following demand and supply functions. Demand: 2p = - q + 56 Supply: 3p - q = 34
-
Rich Novelty Company identified the following activities in its production and support operations. Classify each of these activities as either value-added or nonvalue-added. (a) Machine setup. (b)...
-
Meera Corporations comparative balance sheets are presented below. Additional information: 1. Net income was $22,630. Dividends declared and paid were $19,500. 2. All other changes in noncurrent...
-
Presented below are incomplete manufacturing cost data. Determine the missing amounts for three different situations. Direct Materials Total Manufacturing Costs Direct Labor Used Factory Overhead...
-
Do you think the trend discussed in the case will help companies hire more skilled managers and employees to staff foreign operations? Explain. According to a recent report by the Chronicle of Higher...
-
Some companies agree that the move toward internationalization by U.S. universities primarily reflect an attempt to get more money because foreign buyers are willing to pay top dollar to obtain a...
-
Form teams of five. Each team will come up with a list of five positives and five negatives for the trend discussed in the case. Each team will outline a set of implications of what this trend means...
Study smarter with the SolutionInn App