1. Task 2: learning outcome 2

Problem 2:

In this task your line manager wants to assess your understanding and ability to prepare and produce the Trial Balance by using the following ledger accounts of the Horizons Programming Company in order to:

Instructions

1. Produce a trail balance at July 31st, applying the use of the balance off rule to complete the ledger.
2. Make the adjustments entries for the following transactions before preparing the final accounts for LLC company:

• On 4 July 2021, the business purchased supplies for 2,000. On 31st of July, 2021 the business found out that the supplies still on hand were 1,000 only
• On the1st of July, the business purchased a one-year insurance policy for $ 2,400. Prepare the adjusting entry on 31st of July 2021.
• Horizon received $1,200 on July 2 from customer for advertising services expected to be completed by July 31. Unearned Service Revenue shows a balance of $1,200 on 31st of December 2021. Analysis reveals that the company performed $400 of services

3. At Horizon Company, the following errors were discovered after the transactions had been journalized and posted. Prepare the necessary correcting entry for each of the following.

• A collection on account of $500 was debited to Cash $500 and credited to Service Revenue $500.
• The purchase of supplies on account for $1,270 was recorded as a debit to Supplies for $1,720 and a credit to Accounts Payable for $1,720
• A payment for Advertising Expense costing $620 was omitted from the general journal

4. Prepare the Adjusted Trial Balance.
5. Interpret and identify the accounting errors
6. 

Table 2: Horizon Ledger Book Date Share Capital- Ordinary Explanation Ref Debit Jl No.311 Credit Balance 111,600 111,600 2021 July 1 Land Explanation Ref Debit Credit Balance Date 2021 Jl 8,500 8,500 July. 7 Accumulated Depreciation - Motor Vehicles Date Explanation Ref Debit Credit Balance 2021 Jl 9,000 9,000 July 30 Credit Balance Motor Vehicles Date Explanation Ref Debit 2021 Jl 44,000 July, 7 44,000 Date Equipment Explanation Ref Debit JI 102,000 Credit Balance 102,000 2021 July.15 Accumulated Depreciation - Equipment Date Explanation Ref Debit Credit Balance 2021 Jl 22,500 22,500 July 30 Date 2021 July 11 Accounts Payable No.201 Explanation Ref Debit Credit Balance J1 42,000 42,000 Accounts Receivable No.112 Explanation Ref Debit Credit Balance J1 69.000 69,000 Date 2021 July.8 17 J1 18.000 51,000 Date Service Revenue Explanation Ref Debit J1 Credit Balance 3,300 3,300 2021 July. 11 Date 2021 July 30 Unearned Revenue Explanation Ref Debit J1 Credit Balance 4,000 4,000 Date Drawing Explanation Ref Debit J1 22,000 Credit Balance 22,000 2021 July 21 Inventory Date Explanation Ref Debit 2021 J1 15,000 July.1 Credit Balance 15,000 Date Heating & Lighting Explanation Ref Debit J15,000 Credit Balance 5,000 2021 July 26 Date 2021 July 30 Rent Expense Explanation Ref Debit J114,000 Credit Balance 14,000 Date Wages & Salaries Expense Explanation RCT Debit Credit JT 44.000 Balance July.28 Supplies Explanation Ref Debit JI 2.000 Date 2021 July 1 Credit Balance 2,000 Prepaid Tosurance Explanation Rel Debi JT 500 Credit Balance 500 July.6 Date Explanation Purchases Debat J1312.000 Credit Balance July 6 Date Purchases Return Explanation Debit JI Credit Balance 1.000 1.000 July.7 Sales Explanation Rel Dont JT Credit Balance 425.000 120,000 July 18 Sales Recurs Explanation Ref Debte 2.000 Credit Balance 2021 July.21