Ex. 184
The ledger accounts of the Redlands Place Gym at June 30, 2011 are shown below:
Accounts Payable$ 9,100
Accounts Receivable1,050
Building51,400
Common Stock63,100
Cash15,000
Exercise Equipment18,900
Weight Equipment22,000
Notes Payable49,000
Office Supplies350
Office Equipment2,000
Dividends10,500
Instructions
Prepare a trial balance with the ledger accounts arranged in the proper financial statement order. Include the appropriate heading.
Ex. 185
The ledger account balances for Perkins Company are listed below.
Accounts Payable$ 8,000
Accounts Receivable7,000
Cash11,000
Common Stock9,000
Dividends4,000
Repair Revenue40,000
Salaries Expense25,000
Unearned Revenue2,000
Utilities Expense12,000
Instructions
Prepare a trial balance in proper form for Perkins at December 31, 2011.
Ex 186
The bookkeeper for Stan Lei Auto Repair made a number of errors in journalizing
and posting, as described below.
1.
A credit posting of $400 to Accounts Receivable was omitted.
2.
A debit posting of $750 for Prepaid Insurance was debited to Insurance Expense.
3.
A collection from a customer of $100 in payment of its account owed was journalized and
posted as a debit to Cash $100 and a credit to Service Revenue $100.
4.
A credit posting of $300 to Property Taxes Payable was made twice.
5.
A cash purchase of supplies for $250 was journalized and posted as a debit to Supplies $25
and a credit to Cash $25.
6. A debit of $495 to Advertising Expense was posted as $459
Instructions
For each error:
(a)
Indicate whether the trial balance will balance.
(b)
If the trial balance will not balance, indicate the amount of the difference.
(c)
Indicate the trial balance column that will have the larger total.
Consider each error separately. Use the following form, in which error (1) is given as an example.
(a) (b) (c)
Error In Balance Difference Larger Column
(1)No $400 debit
Solution 186