[i5608470]

First time user of this site, and hopefully I will enjoy it. As an accounting major, I am facing problems with correcting trial balance. I tried my best to solve it myself. My question is :

Dr. A/R 13,710 Cr. A/P 13,710
Cash ? Capital 110,290
Drawing 25,000 Fees earned 333,500
Ins.Exp. 5,000 N/P 40,000
Land 9,900
PPd.Ins. 3,150
Rent Exp. 58,000
Supplies 4,100
Supplies Exp. 5,900
Unearned Rent 6,000
Utilities Exp. 41,500
Wages Exp. 175,000

a. Payment of a cash withdrawal of 3,500 was journalized and posted as a debit of 5,300 to Salary Exp. And a credit of 3,500 to Cash. So, I made incorrect & correct JE

Incorrect: Dr. Salary Exp. 5,300 Correct: Dr. Cash 3,500
Cr. Cash 3,500 Cr. Drawings 3,500

Difference: 5,300-3,500 = 1,800 , Cash = + 1,800 and Drawings = -1,800

b. A payment of 6,100 for eqpt. Purchased was posted as a debit of 1,600 to Equipment(eqpt) and a credit of 1,600 to Cash. I think it is irrelavent to this problem.

c. A fee of 1,850 earned and due from a client was not debited to A/R or credited to revenue account, because the cash had not been received. So, what I did
Correct: Dr. A/R 1,850 So, A/R= +1,850
Cr. Fees earned 1,850 Fees earned = + 1,850
d. A receipt of 325 from an account receivable was journalized and posted as a debit of
325 to Cash and a credit of 325 to Fees Earned. So, what I did

Incorrect: Dr. Cash 325 Correct: Dr. Cash 325
Cr. Fees earned 325 Cr. A/R 325

Cash = +325 and Fees earned= -325
e. A payment of 1,075 to a creditor was posted as a debit of 1,075 to A/P and a debit of
1,075 to Cash. So, what I did

Incorrect: Dr. A/P 1,075 Correct: Dr. A/P 1,075
Dr. Cash 1,075 Cr. Cash 1,075

A/P= -1,075, and Cash= -1,075
Now I have done all the JE, but still trial balance does not balance.

[richsaha2007]

I need more info, they did not give cash. Also, are these extra entries happen after the trial balance was created?

I need dates as well

[CaptainForest]

Why on your trial balance is Cash listed as a <?>,

Anyway, see below:

a. Payment of a cash withdrawal of 3,500 was journalized and posted as a debit of 5,300 to Salary Exp. And a credit of 3,500 to Cash. So, I made incorrect & correct JE

What was done:
Dr. Salary Exp 5,300
Cr. Cash 3,500

What should have been done:
Dr. Drawing 3,500
Cr. Cash 3,500

Therefore, changes that need to be made:
Dr. Drawing 3,500
Cr. Salary Exp 5,300

We need to cancel out the incorrect stuff done to Salary Exp and add the Drawing part.

b. A payment of 6,100 for eqpt. Purchased was posted as a debit of 1,600 to Equipment(eqpt) and a credit of 1,600 to Cash.

What was done:
Dr. Equipment 1,600
Cr. Cash 1,600

What should have been done:
Dr. Equipment 6,100
Cr. Cash 6,100

What changes need to be made:
Dr. Equipment 4,500 (6,100 – 1,600)
Cr. Cash 4,500

They bought equipment for 6,100 and pair 6,100 for it. But only recorded it at 1,600 so changes must be made to bump it up.

c. A fee of 1,850 earned and due from a client was not debited to A/R or credited to revenue account, because the cash had not been received.

What was done:
Nothing.

What should have been done:
Dr. AR 1,850
Cr. Revenue 1,850

What changes need to be made:
Dr. AR 1,850
Cr. Revenue 1,850

d. A receipt of 325 from an account receivable was journalized and posted as a debit of 325 to Cash and a credit of 325 to Fees Earned.

What was done:
Dr. Cash 325
Cr. Fees Earned 325

What should have been done:
Dr. Cash 325
Cr. AR 325

Therefore, changes that need to be made:
Dr. Fees Earned 325
Cr. AR 325.

Debit Fees Earned to get rid of that mistaken entry and credit AR because you have to bring down AR.

e. A payment of 1,075 to a creditor was posted as a debit of 1,075 to A/P and a debit of 1,075 to Cash.

What was done:
Dr. AP 1,075
Dr. Cash 1,075

What should have been done:
Dr. AP 1,075
Cr. Cash 1,075

Changes that need to be made:
Cr. Cash 2,150 (1,075 x 2)

Debit to AP was done correct. As for cash. You need to credit it 1,075 to reverse the original mistake to get it back to 0, plus another credit to cash of 1,075 to get it to a total balance of 1,075 credit to cash.



Now that that is all done, we take the 5 changes and add them to the trial balance below.

The original trial balance that you posted was:

DEBITS
A/R 13,710
Cash ?
Drawing 25,000
Ins.Exp. 5,000
Land 9,900
PPd.Ins. 3,150
Rent Exp. 58,000
Supplies 4,100
Supplies Exp. 5,900
Unearned Rent 6,000
Utilities Exp. 41,500
Wages Exp. 175,000

Total Debits: 347,260 + ? Cash

CREDITS
A/P 13,710
Capital 110,290
Fees earned 333,500
N/P 40,000

Total Credits: 497,500

Again, what is the value of the original cash?

Changes that we have made in the above:

A)
Dr. Drawing 3,500
Cr. Salary Exp 5,300

B)
Dr. Equipment 4,500
Cr. Cash 4,500

C)
Dr. AR 1,850
Cr. Revenue 1,850

D)
Dr. Fees Earned 325
Cr. AR 325.

E)
Cr. Cash 2,150


Therefore, our new trial balance looks like this:

DEBITS
A/R 13,710 + 1,850 - 325 = 15,235
Cash ? - 4,500 – 2,150 = ? – 6,650
Drawing 25,000 + 3,500 = 28,500
Ins.Exp. 5,000
Land 9,900
PPd.Ins. 3,150
Rent Exp. 58,000
Supplies 4,100
Supplies Exp. 5,900 - 5,300 = 600
Unearned Rent 6,000
Utilities Exp. 41,500
Wages Exp. 175,000
Equipment +4,500 = 4,500

Total Debits: 344,835 + ? Cash

CREDITS
A/P 13,710
Capital 110,290
Fees earned 333,500 + 1,850 - 325 = 333,025
N/P 40,000

Total Credits: 499,025

Therefore, based on this, I would assume the original Cash balance is:
499,025 – 344,835 = 154,190

Plus the deductions of 6,650, the Cash on the adjusted trial balance should be: 147,540

[richsaha2007]

I got the same answer. If cash wasn't given it have to be 147,540