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-   -   Can anyone tell me where I went wrong (https://www.askmehelpdesk.com/showthread.php?t=411502)

  • Oct 31, 2009, 04:33 PM
    Conniesmom
    Can anyone tell me where I went wrong
    ACCOUNT TITLE TRIAL BALANCE ADJUSTMENTS
    debit credit debit credit
    Prepaid Insurance $3,600 (5) 600
    Supplies 2,800 (4) 2,100
    Equipment 25,000 (1) 1,200
    Acc. Dep.-Equipment $8,400 (1) 1,200
    Notes Payable 20,000 (3) 500
    Unearned Rent 9,900 (2) 3,300
    Rent Revenue 60,000 (2) 3,300
    Interest Expense 0
    Wages Expense 14,000
    Depreciation Expense
    Insurance Expense (5) 600
    Interest Payable (3) 500
    Supplies Expense. (4) 2,100
    Totals $45,400 98,300 7,700 7,700

    An analysis of the accounts shows the following.
    1. The equipment depreciates $400 per month.
    2. One-third of the unearned rent was earned during the quarter.
    3. Interest of $500 is accrued on the notes payable.
    4. Supplies on hand total $700.
    5. Insurance expires at the rate of $200 per month.
  • Nov 1, 2009, 12:37 AM
    rehmanvohra

    The trial balance is out by excess credit of 52900. I think you forgot to mention some asset as well as capital account as of the beginning of the quarter.

    Depreciation entry is wrong:
    Debit Depreciation expense 1200
    Credit Accumulated depreciation 1200

    Interest expense is shown as payable in entry(3)

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