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View Full Version : Errors in a Trial balance


djay01
Jun 13, 2012, 08:48 AM
I can't seem to get it balanced, off by either a dollar or 17 every time.

Here is the trial balance

Debit
Cash 5498
A/R 2750
Prepaid Insurance 613
Equipment 8031
Salaries Expense 3797
Advertising Expense 1484
Property Tax expense 830


Credits
A/P 4934
Property taxes payable 563
Capital 1085
Service revenue 6690

Here is what they think is off or is off

A/P, Prepaid Insurance and Property tax expense each understated by 104

Transposition errors were main in a/r and service revenue 2570 and 6960

A 1010 cash drawing by owner was debited to Capital and credited to cash for 1010.00

A 560 supplies purchased was debited to equipment for 560 and credited to cash for 560

A cash payment of 46.00 for advertising was debited to advertising expense for 46 and credited to cash for 46.00

A debit posting to salaries of 177 was omitted

A collection from a customer for 163 was debited to cash for 163 and credited to Accounts Payable for 163

I have been doing this all week for my class and just cannot seem to get it right. Help would greatly appreciated. Thank all of you

paraclete
Jun 13, 2012, 04:06 PM
I can't seem to get it balanced, off by either a dollar or 17 every time.

Here is the trial balance

Debit
Cash 5498
A/R 2750
Prepaid Insurance 613
Equipment 8031
Salaries Expense 3797
advertising Expense 1484
Property Tax expense 830


Credits
A/P 4934
Property taxes payable 563
Capital 1085
Service revenue 6690

Here is what they think is off or is off

A/P, Prepaid Insurance and Property tax expense each understated by 104

transposition errors were main in a/r and service revenue 2570 and 6960

A 1010 cash drawing by owner was debited to Capital and credited to cash for 1010.00

A 560 supplies purchased was debited to equipment for 560 and credited to cash for 560

a cash payment of 46.00 for advertising was debited to advertising expense for 46 and credited to cash for 46.00

a debit posting to salaries of 177 was omitted

a collection from a customer for 163 was debited to cash for 163 and credited to Accounts Payable for 163

I have been doing this all week for my class and just cannot seem to get it right. Help would greatly appreciated. Thank all of you

What I suggest you do is get a spreadsheet and make each adjustment so you have a new trail balance column at each step as you post your adjustments checking that the only change in the balance is the one you have made so you don't introduce any more errors you cannot avoid the possibility that there are more errors than you have been told about or you have made transcription or transposition errors yourself .I would say there is a transcription error to Capital as there is a massive imbalance in the data you have provided

djay01
Jun 13, 2012, 08:46 PM
Yes it was suppose my be 10855. I have done that and now got it down to the dollar. I just can't seem to find the error, I have double checked everything.

paraclete
Jun 13, 2012, 09:07 PM
Yes it was suppose my be 10855. I have done that and now got it down to the dollar. I just can't seem to find the error, i have double checked everything.


How should the item be intrepreted? Are we dealing with a missing decimal point
A cash payment of 46.00 for advertising was debited to advertising expense for 46 and credited to cash for 46.00
Prima face this is not an error but a typo

Let's see your workings

djay01
Jun 14, 2012, 09:33 AM
This is where I am at right now.


Debit Credit Items added
Cash 5498
a/r 2913 163
Prepaid ins 717 104
Equip 8031
a/p 5038 104
Property tax payables 563
M. Sterling Capital 11865 1010
Service Revenue 6690
Salaries expense 3974 177
Advertising expense 1530 46
Propery tax expense 934 104
Supplies 560


24157 24156

paraclete
Jun 14, 2012, 04:43 PM
This is where I am at right now.


Debit Credit Items added
cash 5498
a/r 2913 163
prepaid ins 717 104
equip 8031
a/p 5038 104
property tax payables 563
M. Sterling Capital 11865 1010
Service Revenue 6690
Salaries expense 3974 177
advertising expense 1530 46
propery tax expense 934 104
supplies 560


24157 24156
Transposition errors were main in a/r and service revenue 2570 and 6960

A 1010 cash drawing by owner was debited to Capital and credited to cash for 1010.00

A 560 supplies purchased was debited to equipment for 560 and credited to cash for 560

A cash payment of 46.00 for advertising was debited to advertising expense for 46 and credited to cash for 46.00


From where I sit you haven't dealt with some of the transactions and adjustments
Equipment needs to be adjusted now you have moved the incorrect allocation to supplies
You didn't adjust the transposition in Accounts Receivable
In my opinion the cash drawing and the advertising were correctly allocated
Therefore that would leave your trial balance out by 208 suggesting that amendment of three accounts for one error of 104 might be incorrect or incorrectly stated
5498 0 5498 0 5498
2750 180 2570 -163 2407
613 104 717 0 717
8031 0 8031 -560 7471
3797 0 3797 177 3974
1484 0 1484 0 1484
830 104 934 0 934
0 560 560
23003 23031 23045
0 0
4934 104 5038 -163 4875
563 0 563 0 563
10855 0 10855 0 10855
6690 270 6960 0 6960
23042 23416 23253
-39 -385 -208
Click on reply to see the tables properly formatted