accounts (with normal account balances) from the Adjusted Trial Balance of MJM Co. at 12/31/08 is as follows: Sales 1‚500‚000 Cost of Goods Sold 600‚000 Selling Administrative Expense 300‚000 Interest Revenue 180‚000 Gain on the Sale of Equipment 270‚000 Loss on the Sale of IBM Stock 300‚000 Loss from Discontinued Division Operations 750‚000 Gain on the Sale of the Discontinued Division 900‚000 Extraordinary Gain from Tornado Insurance 1‚050‚000 Income Tax Expense (at 30% Rate) 585‚000 What amount of gain appears
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Lerriuqs‚ and financial statements and adjustments are prepared only at the end of the year. The accountant has resigned and Lerriuqs has hired you to help with the business’s December transactions and preparation of Financial Statements. The following is the company’s unadjusted trial balance as at December 1‚ 2013. AWREE NATCACNOTUS INC TRIAL BALANCE DECEMBER 1‚ 2013 DEBIT
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What is a Trial Balance? State its objectives and characteristics. Give some reasons for disagreement of the Trial Balance. A ’Trial Balance’ is a list of all the General ledger accounts (both revenue and capital) contained in the ledger of a business. This list will contain the name of the nominal ledger account and the value of that nominal ledger account. The value of the nominal ledger will hold either a debit balance value or a credit balance value. The debit balance values will be listed
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examples. (10 Marks) 2. Explain any two types of errors that are disclosed by trial balance with examples and rectification entry. Note - Avoid giving examples given in the self learning material. (10 marks) Nov 2010 3. Let us assume you have been recently appointed as Management Accountant of a small but upcoming firm. Your immediate supervisor has asked you to prepare certain financial ratios from the balance sheet of one of their clients M/s Vinod Enterprise. Liabilities Amount Assets
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000 Classification of accounting equation approach with meaning and examples Analysis of transaction –with accounts involved-nature of accountaffects and debit/credit 2 4 10 6 The following trial balance was extracted from the books of Chetan‚ a small businessman. Do you think it is correct? If not‚ rewrite it in the correct form. Debits Stock Purchases Returns outwards Rs. Credits 8250 Capital 12750 Sales 700 Returns inwards Rs. 10000 15900 1590 Discount
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b) If the trial balance can be ‘in balance’ and still have errors‚ give examples of the type of errors that can occur leaving the trial balance in balance. For example‚ if $523 is the correct amount to be entered for both credit and debit side but entered $532‚ trial balance will show the same amounts for both debit and credit side but contains error. In addition‚ reverse entries can cause trial balance to be in balance but still contains error. For example‚ instead of recording debit
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INTRODUCTION: Trial balance is a statement which shows debit balances and credit balances of all accounts in the ledger. Since‚ every debit should have a corresponding credit as per the rules of double entry system‚ the total of the debit balances and credit balances should tally (agree). In case‚ there is a difference‚ one has to check the correctness of the balances brought forward from the respective accounts. Trial balance can be prepared in any date provided accounts are balanced. DEFINITION
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Chapter 2‚ Illustrative Problem 1 Entries into T accounts and trial balance Daphne Ebert‚ an interior design consultant‚ established a professional services corporation known as Daphne Designs‚ Inc. on August 1 of the current year. During the month‚ she opened an office and completed the following transactions connected with her professional practice: a. Daphne deposited $32‚500 drawn on her personal bank account to a business account opened under the name of Daphne’s Designs in exchange
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Adjust Entries for a Trial Balance A trial balance is created by companies at the end of an accounting period. It contains a list of all accounts within an accounting system that have balances. Companies separate the accounts into different categories‚ which include assets‚ liabilities‚ equities‚ revenues and expenses. The accounts are listed in order‚ beginning with assets‚ and each includes a balance that is either a debit or credit. Asset and expense accounts have debit balances‚ while the other
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Conclusions The purpose of this experiment was to once and for all answer the question‚ “do the Power Balance Bands truly have an effect on a person’s balance strength and flexibility or is the whole thing a scam?” The company claims that the these bracelets have a hologram in it and when the hologram comes in contact with your body’s energy field‚ it allows your body to interact with the natural‚ beneficial frequency stored within the hologram‚ resulting in improved energy flow throughout your
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