The trial balance of Building Blocks Child Care does not balance. The following errors are detected: a.
Question:
The trial balance of Building Blocks Child Care does not balance.
The following errors are detected:
a. Cash is understated by $ 4,000.
b. A $ 2,000 debit to Accounts
c. A $ 1,200 purchase of office supplies on account was neither journalized nor posted.
d. Equipment was incorrectly transferred from the ledger as $ 88,000. It should have been transferred as $ 87,700.
e. Salaries Expense is overstated by $ 100.
f. A $ 300 cash payment for advertising expense was neither journalized nor posted.
g. A $ 100 cash dividend was incorrectly journalized as $ 1,000.
h. Service Revenue was understated by $ 4,000.
i. A 12-month insurance policy was posted as a $ 2,000 credit to Prepaid Insurance. Cash was posted correctly.
Prepare the corrected trial balance as of May 31, 2015. Journal entries are not required.
DividendA dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Step by Step Answer:
Horngrens Financial and Managerial Accounting
ISBN: 978-0133255584
4th Edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura