84 Chapter 2 Analyzing Transactions

Indicate which of the following errors, each considered individually, would cause thetrial balance totals to be unequal:

a. A payment of $2,150 to a creditor was posted as a debit of $2,150 to Accounts Payableand a debit of $2,150 to Cash.

b. A fee of $4,600 earned and due from a client was not debited to Accounts Receivableor credited to a revenue account, because the cash had not been received.

c. A receipt of $3,100 from an account receivable was journalized and posted as a debitof $3,100 to Cash and a credit of $3,100 to Fees Earned.

d. A payment of $10,000 for equipment purchased was posted as a debit of $1,000 toEquipment and a credit of $1,000 to Cash.

e. Payment of a cash withdrawal of $15,000 was journalized and posted as a debit of$5,000 to Salary Expense and a credit of $15,000 to Cash.

EX 2-17Effect of errors on trial balance

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The accounts in the ledger of Aznar Co. as of October 31, 2010, are listed in alphabeti-cal order as follows. All accounts have normal balances. The balance of the cash ac-count has been intentionally omitted.

Accounts Payable $ 28,000 Notes Payable $ 60,000Accounts Receivable 56,250 Prepaid Insurance 4,500Cash ? Rent Expense 90,000Ellen Kubota, Capital 129,850 Supplies 3,150Ellen Kubota, Drawing 30,000 Supplies Expense 11,850Fees Earned 465,000 Unearned Rent 13,500Insurance Expense 9,000 Utilities Expense 62,250Land 127,500 Wages Expense 262,500Miscellaneous Expense 13,350

Prepare an unadjusted trial balance, listing the accounts in their proper order and in-serting the missing figure for cash.

EX 2-16Trial balance

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Total of Creditcolumn: $696,350

The following preliminary unadjusted trial balance of Nevada-For-You Co., a sportsticket agency, does not balance:

Nevada-For-You Co.Unadjusted Trial Balance

December 31, 2010

Debit CreditBalances Balances

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47,350Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,100Prepaid Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,500Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,980Unearned Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,900Tammy Gazboda, Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82,420Tammy Gazboda, Drawing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000Service Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83,750Wages Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,000Advertising Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,200Miscellaneous Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,425________ ________

176,570 151,055________ ________________ ________

When the ledger and other records are reviewed, you discover the following: (1) thedebits and credits in the cash account total $47,350 and $33,975, respectively; (2) a billingof $2,500 to a customer on account was not posted to the accounts receivable account;

EX 2-18Errors in trial balance

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Total of Credit column: $181,600

a. Journalize the above transactions in a two-column journal, using the appropriatenumber to identify the transactions. Journal entry explanations may be omitted.

b. Post the entries prepared in (a) to the following T accounts: Cash, Supplies, AccountsReceivable, Accounts Payable, Fees Earned. To the left of each amount posted in theaccounts, place the appropriate number to identify the transactions.