204. Ignoring closing entries, state for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries during the course of normal operations of a business. Also, indicate the normal balance of each account.
1.
|
Fees Earned
|
4.
|
Supplies
|
2.
|
Utilities Expense
|
5.
|
Cash
|
3.
|
Accounts Payable
|
6.
|
Accounts Receivable
|
|
|
|
|
1. Credit entries only, normal credit balance
2. Debit entries only, normal debit balance
3. Both debit and credit entries, normal credit balance
4. Both debit and credit entries, normal debit balance
5. Both debit and credit entries, normal debit balance
6. Both debit and credit entries, normal debit balance
205. On June 1, the cash account balance was $75,880. During June, cash receipts totaled $305,000 and the June 30 balance was $96,750. Determine the cash payments made during June.
96,750 = 75,880 + 305,000 - ?
Cash payments = $284,130
206. For each of the following errors, considered individually, indicate whether the error would cause the trial balance totals to be unequal. If the error would cause the trial balance total to be unequal, indicate whether the debit or credit total is higher and by how much.
A.
|
Payment of a cash dividend of $6,800 was journalized and posted as a debit of $8,600 to Salaries Expense and a credit of $8,600 to Cash.
|
B.
|
A fee of $9,780 earned was debited to Accounts Receivable for $7,980 and credited to Fees Earned for $9,780.
|
C.
|
A payment of $3,000 to a creditor was posted as a credit of $3,000 to Accounts Payable and a credit of $3,000 to Cash.
|
|
|
207. The following errors took place in journalizing and posting transactions:
A.
|
A dividend payment of $5,000 was recorded as a debit to Office Expense and a credit to Cash.
|
B.
|
Accounts receivable payment for $7,800 was recorded as a debit to Cash and a credit to Fees Earned.
|
|
|
Journalize the entries to correct the errors. Omit the explanations.
208. Discuss and describe how errors in accounts can be found.
1) through audit procedures.
2) by looking at the trial balance.
3) by chance.