Study Guide
Course: ACC/290
Financial Accounting, Fifth Edition by Kimmel, Weygandt, and Kieso
Solving Financial Accounting Problems Using Microsoft Excel for Windows by Rex A Schildhouse
P3-7B, Prepare a correct trial balance.
This trial balance of Schumaker Company does not balance.
SCHUMAKER COMPANY
Trial Balance
May 31, 2010
Debit
Cash
$6,340
Accounts Receivable
Prepaid Insurance
700
Equipment
8,000
Accounts Payable
Property Taxes Payable
750
Common Stock
Retained Earnings
Service Revenue
7,690
Salaries Expense
4,200
Advertising Expense
Property Tax Expense
900
$28,580
Credit
$2,750
4,100
5,700
6,000
1,100
$19,650
Your review of the ledger reveals that each account has a normal balance. You also discover the following errors.
1. The totals of the debit sides of Prepaid Insurance, Accounts Payable, and Property Tax Expense were each understated
$100
2. Transposition errors were made in Accounts Receivable and Service Revenue. Based on postings made, the correct balances were
$2,570
$7,960
, respectively. and 3. A debit posting to Salaries Expense of
$400
was omitted.
4. An
$800
cash dividend was debited to Common Stock for
$800
and credited to
Cash for
$800
$350 purchase of supplies on account was debited to Equipment for
$350
5. A and credited to Cash for
$350
$450 for advertising was debited to Advertising Expense for
$45
6. A cash payment of and credited to Cash for
$45
7. A collection from a customer for
$240
was debited to Cash for
$240
and credited to Accounts Payable for
$240
Instructions:
Prepare the correct trial balance, assuming all accounts have normal balances. (Note: The chart of accounts also includes the following: Dividends and Supplies.)
Cash
Accounts Receivable
Prepaid Insurance
Equipment
Supplies
Accounts Payable
Property Taxes Payable
Common Stock
Dividends
Retained Earnings
Service Revenue
Salaries Expense
Advertising Expense
Property Tax Expense
Financial Accounting, Fifth Edition by Kimmel, Weygandt, and Kieso
Solving Financial Accounting Problems Using Microsoft Excel for Windows by Rex A Schildhouse
P3-7B, Prepare a correct trial balance.
This trial balance of Schumaker Company does not balance.
SCHUMAKER COMPANY
Trial Balance
May 31, 2010
Debit
Cash
$6,340
Accounts Receivable
Prepaid Insurance
700
Equipment
8,000
Accounts Payable
Property Taxes Payable
750
Common Stock
Retained Earnings
Service Revenue
7,690
Salaries Expense
4,200
Advertising Expense
Property Tax Expense
900
$28,580
Credit
$2,750
4,100
5,700
6,000
1,100
$19,650
Your review of the ledger reveals that each account has a normal balance. You also discover the following errors.
1. The totals of the debit sides of Prepaid Insurance, Accounts Payable, and Property Tax Expense were each understated
$100
2. Transposition errors were made in Accounts Receivable and Service Revenue. Based on postings made, the correct balances were
$2,570
$7,960
, respectively. and 3. A debit posting to Salaries Expense of
$400
was omitted.
4. An
$800
cash dividend was debited to Common Stock for
$800
and credited to
Cash for
$800
$350 purchase of supplies on account was debited to Equipment for
$350
5. A and credited to Cash for
$350
$450 for advertising was debited to Advertising Expense for
$45
6. A cash payment of and credited to Cash for
$45
7. A collection from a customer for
$240
was debited to Cash for
$240
and credited to Accounts Payable for
$240
Instructions:
Prepare the correct trial balance, assuming all accounts have normal balances. (Note: The chart of accounts also includes the following: Dividends and Supplies.)
Cash
Accounts Receivable
Prepaid Insurance
Equipment
Supplies
Accounts Payable
Property Taxes Payable
Common Stock
Dividends
Retained Earnings
Service Revenue
Salaries Expense
Advertising Expense
Property Tax Expense