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-   -   How do I make Ledger and Journal reveals the following Errors (https://www.askmehelpdesk.com/showthread.php?t=447523)

  • Feb 15, 2010, 06:31 PM
    Rekha68
    How do I make Ledger and Journal reveals the following Errors
    Instructions
    From this information prepare a corrected trial balance.

    E3-4
    (Corrected Trial Balance) The trial balance of Oakley Co. does not balance.


    OAKLEY CO.
    TRIAL BALANCE
    JUNE 30, 2010

    Debit
    Credit
    Cash

    $ 2,870
    Accounts Receivable
    $ 3,231

    Supplies
    800

    Equipment
    3,800

    Accounts Payable

    2,666
    Unearned Service Revenue
    1,200

    Common Stock

    6,000
    Retained Earnings

    3,000
    Service Revenue

    2,380
    Wages Expense
    3,400

    Office Expense
    940


    $13,371
    $16,916



    Each of the listed accounts should have a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors.

    1.
    Cash received from a customer on account was debited for $370, and Accounts Receivable was credited for the same amount. The actual collection was for $730.

    2.
    The purchase of a computer printer on account for $500 was recorded as a debit to Supplies for $500 and a credit to Accounts Payable for $500.

    3.
    Services were performed on account for a client for $890. Accounts Receivable was debited for $890 and Service Revenue was credited for $89.

    4.
    A payment of $65 for telephone charges was recorded as a debit to Office Expense for $65 and a debit to Cash for $65.

    5.
    When the Unearned Service Revenue account was reviewed, it was found that $225 of the balance was earned prior to June 30.

    6.
    A debit posting to Wages Expense of $670 was omitted.

    7.
    A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260.

    8.
    A dividend of $575 was debited to Wages Expense for $575 and credited to Cash for $575.


    Instructions
    Prepare a correct trial balance. (Note: It may be necessary to add one or more accounts to the trial balance.)
  • Feb 15, 2010, 10:29 PM
    rehmanvohra

    I wish I could help you if you had posted your answer to the errors. However, as a guidance, please recheck the trial balance totals.

    Find out the revised difference in the trial balance and enter it as a suspense account.

    Now analyse each adjustment and make necessary corrections.
  • Mar 9, 2011, 03:42 PM
    channonLee
    How do I correct this trail balance?
  • Mar 9, 2011, 04:06 PM
    pready
    1 Attachment(s)

    The best thing to do is set-up a trial balance in Excel and enter the accounts with their correct normal balances as your starting point, then go from there.

    I have attached a trial balance, so you will know what one looks like.
  • Mar 10, 2011, 11:31 PM
    channonLee
    In your opinion, which location is the better location for reporting case on th balance sheet and why did you select that location.
  • Mar 10, 2011, 11:36 PM
    channonLee
    This is a discussion question:
    In your opinion, which location is the better location for reporting case on the balance sheet and why did you select that location?

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