Corporate Financial Accounting
15th Edition
ISBN: 9781337398169
Author: Carl Warren, Jeff Jones
Publisher: Cengage Learning
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Chapter 2, Problem 2.20EX
Errors in
Identify the errors in the following trial balance. All accounts have normal balances.
| Ensemble Co. Unadjusted Trial Balance For the Year Ending December 31, 20Y8 |
||
| Debit Balances |
Credit Balances |
|
| Cash |
42,900 |
|
| Accounts Receivable |
123,500 |
|
| Prepaid Insurance | 27,000 | |
| Equipment | 300,000 | |
| Accounts Payable |
52,000 | 4,800 |
| Salaries Payable | ||
| Common Stock | 40,000 | |
| Retained Earnings | 137,200 | |
| Dividends | 5,000 | |
| Service Revenue | 1,216,000 | |
| Salary Expense | 660,000 | |
| Advertising Expense | 275,000 | |
| Miscellaneous Expense | 16,600 | |
| 1,801,500 | 1,801,500 | |
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Students have asked these similar questions
The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31:
June 8. Wrote off account of Kathy Quantel, $8,150.
Aug. 14. Received $5,790 as partial payment on the $14,590 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible.
Oct. 16. Received the $8,150 from Kathy Quantel, whose account had been written off on June 8. Reinstated the account and recorded the cash
receipt.
Dec. 31. Wrote off the following accounts as uncollectible (record as one journal entry):
Wade Dolan
$2,360
Greg Gagne
1,470
Amber Kisko
5,620
Shannon Poole
3,260
Niki Spence
900
Dec. 31.
If necessary, record the year-end adjusting entry for uncollectible accounts.
If no entry is required, select "No entry" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank.
a. Journalize the transactions under the direct write-off method.
June 8 Bad Debt Expense
Accounts Receivable-Kathy Quantel
Aug. 14 Cash…
The following summarizes the aging of accounts receivable for Orange Incorporated as of July 31, Year 1:
Number of Days
Unpaid
Not yet due
1 to 30 days past
due
31 to 60 days
past due
Over 60 days
past due
Total
Accounts
Receivable
11.130
$ 175,982
89,200
53,600
31,800
Historical % Uncollectible
17,424 margin of error +/-3
www.
29
12%
18%
The unadjusted balance of the Allowance for Doubtful Accounts of Orange Incorporated is a credit balance in the amount of
$17.578 on July 31, Year 1. What is the amount of the adjusting entry to be recorded on July 31 Year 17
35%
After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $664,657 and Allowance for Doubtful Accounts has a balance of $21,609. What is the net realizable value of the accounts receivable?
a.$21,609
b.$664,657
c.$643,048
d.$686,266
Chapter 2 Solutions
Corporate Financial Accounting
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