[binnymann]

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.

My answers:

Blues Corner Coporation
Trial Balance
April 30
Debit Credit
Cash 6267
Accounts receivable 6715
Supplies on hand 2967
Furniture and equipment 6100
Accounts payable 10244
Common shares 8000
Retained earnings 2000
Service revenue 5280
Office expense 4320
26369 25524

Cash
Accts Receivable 5240-450+1925 = 6715
Accts payable 7044-3200 = 10244
Service revenue 5200+80= 5280

[Criado]

Please check your cash, account receivable, service revenue and office expense balance.

[binnymann]

Thanks.. How can I check the balance. Please help with my entries.

[Criado]

Just assess how each info affects the unadjusted trial balance. Let me give the number 1 as an example.

1. Cash received from customer on account was recorded (both dr and cr a) as $1380 instead of $1830.

This will debit cash 1,380 and credit accounts receivable 1,380.

Please show me your entry on the succeeding numbers then I'll comment on them.

[binnymann]

Following are my entries:

2. The purchase on account of a computer costing $3200 was recorded as a debit to office expense and a credit to accounts payable.

Accounts Payable dr 3200
cash cr 3200

3. Services that were performed for $2250 on account for a client were recorded as a $2250 debit to accounts receivable and a $225 credit to service revenue.

Accounts revenue dr $1925

4. A payment of $95 for telephone charges was entered as a debit to office expense and a debit to cash.

Cash cr 95

5. The service revue account was totalled $5200 instead of $5280.

Service revenue dr 80

Cash = 5912+(debit cash 450)-(office exp cash 95)
Accounts receivable 5240-450+1952
Accounts payable 7044-3200

[Criado]

Hi Binnyman, I thought we're not supposed to balance it?

Just follow the instruction and do not journalize it properly.

Your number 3 is wrong. Do not worry even if your entry is not balanced. If I am not mistaken, this exercise is for the purpose of detecting and adjusting errors.

Your number 2 is wrong; your number 4 lacks a debit side, and your number 5 is correct.

Please show me your entry on the remaining numbers then I'll comment on them.

[binnymann]

Hey.. I got it.. thanks a lot for your help.. really appreciate it.

Cheers!!

[Criado]

No problem :)