PR 2-6A
Tech Support Services has the following unadjusted trial balance as of January 31, 2019:
Tech Support Services
Unadjusted Trial Balance
January 31, 2019
Debit Credit
Balances Balances
Cash ………………………………………………………………………… 25,550
Accounts Receivable …………………………………………………… 44,050
Supplies ……………………………………………………………………. 6,660
Prepaid Insurance ………………………………………………………. 3,600
Equipment ………………………………………………………………… 162,000
Notes Payable ……………………………………………………………. 75,000
Accounts Payable ………………………………………………………. 13,200
Thad Engelberg, Capital ………………………………………………. 101,850
Thad Engelberg, Drawing …………………………………………….. 33,000
Fees Earned ………………………………………………………………. 534,000
Wages Expense ………………………………………………………….. 306,000
Rent Expense …………………………………………………………….. 62,250
Advertising Expense …………………………………………………… 23,850
Gas, Electricity, and Water Expense ………………………………. 17,000
684,260 724,050
The debit and credit totals are not equal as a result of the following errors:
a. The cash entered on the trial balance was overstated by $8,000.
b. A cash receipt of $4,100 was posted as a debit to Cash of $1,400.
c. A debit of $12,350 to Accounts Receivable was not posted.
d. A return of $235 of defective supplies was erroneously posted as a $325 credit to
Supplies.
e. An insurance policy acquired at a cost of $3,000 was posted as a credit to Prepaid
Insurance.
f. The balance of Notes Payable was overstated by $21,000.
g. A credit of $3,450 in Accounts Payable was overlooked when the balance of the
account was determined.
h. A debit of $6,000 for a withdrawal by the owner was posted as a debit to Thad
Engelberg, Capital.
i. The balance of $28,350 in Advertising Expense was entered as $23,850 in the trial
balance.
j. Miscellaneous Expense, with a balance of $4,600, was omitted from the trial balance.
Instructions
1. Prepare a corrected unadjusted trial balance as of January 31, 2019.
2. Does the fact that the unadjusted trial balance in (1) is balanced mean that there are
no errors in the accounts? Explain.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more
Recent Comments