binnymann
Jul 11, 2008, 09:41 PM
I need help with the following question. I am new to accounting.. I want to check my answers before submission. Any sort of help with be very appreciated.
Trail Bal April 30 dr cr
Cash $5912
Accounts Receivable $5240
Supplies in Hand $2967
Furniture and Equipment $6100
Accounts payable $7044
Common shares $8000
Retained earnings $2000
Service revenue $5200
Office expense $4320
1. Cash received from customer on account was recorded (both dr and cr a) as $1380 instead of $1830.
2. The purchase on account of a computer costing $3200 was recorded as a debit to office expense and a credit to accounts payable.
3. Services that were perfoemed for $2250 on account for a client were recorded as a $2250 debit to accounts receivable and a $225 credit to service revenue.
4. A payment of $95 for telephone charges was entered as a debit to office expense and a debit to cash.
5. The service revue account was totalled $5200 instead of $5280.
Instructions:
Use the information to prepare a correct balance.
Trail Bal April 30 dr cr
Cash $5912
Accounts Receivable $5240
Supplies in Hand $2967
Furniture and Equipment $6100
Accounts payable $7044
Common shares $8000
Retained earnings $2000
Service revenue $5200
Office expense $4320
1. Cash received from customer on account was recorded (both dr and cr a) as $1380 instead of $1830.
2. The purchase on account of a computer costing $3200 was recorded as a debit to office expense and a credit to accounts payable.
3. Services that were perfoemed for $2250 on account for a client were recorded as a $2250 debit to accounts receivable and a $225 credit to service revenue.
4. A payment of $95 for telephone charges was entered as a debit to office expense and a debit to cash.
5. The service revue account was totalled $5200 instead of $5280.
Instructions:
Use the information to prepare a correct balance.