When the trial balance extracted from the books of Keman Enterprises at the year-end failed to balance, the difference was placed in a Suspense account. Identify the amount that would have been placed in suspense as a result of each of the following errors; GH₵ 218,400 paid to a supplier was posted to the supplier as GH₵ 214,800

When the trial balance extracted from the books of Keman Enterprises at the year-end failed to balance, the difference was placed in a Suspense account. Identify the amount that would have been placed in suspense as a result of each of the following errors; GH₵ 218,400 paid to a supplier was posted to the supplier as GH₵ 214,800

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter5: Accounting Systems

Section: Chapter Questions

Problem 19E: After Bunker Hill Assay Services Inc. had completed all postings for March in the current year...

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When the trial balance extracted from the books of Keman Enterprises at the year-end failed to balance, the difference was placed in a Suspense account. Identify the amount that would have been placed in suspense as a result of each of the following errors; A folio in the Purchases Journal has been under-cast by GH₵ 1,800
4. At the year-end of T Down & Co, an imbalance in the trial balance was revealed which resulted in the creation of a асcount with credit balance of $1,040. suspense Investigations revealed the following errors. a. A sale of goods on credit for $1,000 had been omitted from the sales account. a b. Delivery and installation costs of $240 on a new item of plant had been recorded as a revenue expense. c. Cash discount of $150 on paying a supplier, JW, had been taken, even though the payment was made outside the time limit. d. Inventory of stationery at the end of the period of $240 had been ignored. e. A purchase of raw materials of $350 had been recorded in the purchases account as $850. f. The purchase returns day book included a sales credit note for $230 which had been entered correctly in the account of the customer concerned, but included with purchase returns in the nominal ledger. Required (a) Prepare journal entries to correct each of the above errors. Narratives are not required.…
Prior to recording the following, Elite Electronics, Inc., had a credit balance of $2,200 in its Allowance for Doubtful Accounts a. On August 31, a customer balance for $320 from a prior year was determined to be uncollectible and was written off. b. On December 15, the customer balance for $320 written off on August 31 was collected in full. Required: For each transaction listed above, indicate the amount and direction (+for increase, - for decrease) of effects on the financial statement accounts and on the overall accounting equation. Hint: On December 15th, first reinstate the Accounts receivable and then record the collection of cash. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign.) Assets Liabilities Stockholders' Equity b(2)
Prior to recording the following, Elite Electronics, Inc., had a credit balance of $2,000 in its Allowance for Doubtful Accounts.Required:Prepare journal entries for each transaction.a. On August 31, a customer balance for $300 from a prior year was determined to be uncollectible and was written off.b. On December 15, the customer balance for $300 written off on August 31 was collected in full.
The trial balance prepared at December 31 for Kim Yong San Inc., did not balance. Debit total was P1,592,500 and credit total was P1,532,000. In determining the cause of the difference, you discovered the following errors: a credit to Cash of P6,500 was not posted; a P20,000 credit to be made to Sales account was credited to the Accounts Receivable account instead; the wages payable account balance of P93,000 was listed in the trial balance as P39,000. What is the correct trial balance total? A. P1,592,500 B. P1,606,000 C. P1,612,500 |D. P1,586,000
Anaba Sampson is an audit assistant of Global Accountants, a firm of Chartered Accountants. During the audit of a client’s account, for the year ended 31 December 2020, Anaba Sampson detected an error amounting to Ten Ghana Cedis (GH¢10.00) in respect to each interest payment which recurred a number of times. The Chief Accountant of the client advised Anaba not to request for passing any adjustment entry as individually the errors were insignificant. The company had GHS 3,000 deposit accounts and interest was paid half yearly. Required: i) Describe the factors that affect judgment about materiality. ii) Discuss the advice of the Chief Accountant.
Prior to recording the following, Elite Electronics, Incorporated, had a credit balance of $2,200 in its Allowance for Doubtful Accounts. Required: Prepare journal entries for each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) On August 31, a customer balance for $320 from a prior year was determined to be uncollectible and was written off. On December 15, the customer balance for $320 written off on August 31 was collected in full.
At year-end a trial balance prepared shows total credits exceed total debits by $855. This discrepancy could have been caused by a. An error in the general journal where an increase of $855 in accounts payable was recorded as a decrease of $855 in accounts payable. b. The ledger balance of accounts receivable was wrongly entered in the trial balance as 95 instead of $950. c. The ledger balance for accounts payable of $8,550 entered in the trial balance as $855. d. $855 increase in accounts receivable was recorded as a $855 increase in cash in general journal.
The trial balance of the Sterling investigative Services shown next age does not balance. Your review of the general ledger reveals that each account has a normal balance. You also discovered the following errors. a. The totals of the debit sides of Rent Deposit, Accounts Payable, and Representation Expense were each understood to be P1,000. b. Transposition errors were made in Accounts Receivable and Service Revenue. Based on postings made, the correct balances were P25,700 and P69,600, respectively. c. Check payment for P9.400 was properly recorded, and the cash credit properly posted, but the accountant failed to post to the debit side of the taxes payable account. d. The trial balance shows some accounts are not on their proper sides. e. A cash debit posting for P5,000 was posted on the credit side. Credit P27,500 Sterling Investigative Services Trial Balance May 31, 2017 Debit Cash P55,800 Accounts Receivable Rent Deposit 7,000 Equipment 80,000 Accounts payable Taxes Payable…
At the end of year there was an imbalance in the trial balance of Messy and Co which meant that a suspense account with a credit balance of €700 had to be created. The following items were discovered after investigation: I. A sales credit note for €750 was correctly recorded on the trade receivables account but inconectly included with purchases returns. A stock of Heating Oil valued at €300 had not been accounted for at all. All costs associated with light and heat have been recorded in the appropriate expense account. III. П. An early settlement discount of €100 had been taken even though the early payment period had expired, and the supplier statement records the amount as still due Cost of sales included €750 for components for a new non-current asset. These components will extend the useful life of the asset and should have been capitalised. Sale of goods for €1,200 on credit had been entered correctly in the trade receivables account but omitted in the sales account. IV. V. VI.…
The following transactions were completed by Irvine Company during the current fiscal year ended December 31: Required: 1. Record the January 1 credit balance of $25,685 in a T-account for Allowance for Doubtful Accounts. 2.A. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. B. Post each entry that affects the following selected T-accounts and determine the new balances: Allowance for Doubtful Accounts and Bad Debt Expense. 3. Determine the expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry). 4. Assuming that instead of basing the provision for uncollectible accounts on an analysis of receivables, the adjusting entry on December 31 had been based on an estimated expense of ¼ of 1% of the net sales of $17,710,000 for the year, determine the following: A. Bad debt expense for the year. B. Balance in the allowance account after the adjustment of…
At the beginning of the year, the balance in the Allowance for Doubtful Accounts is a credit of $743. During the year, $344 of previously written off accounts were reinstated and accounts totaling $756 are written off as uncollectible. The end-of-year balance (before adjustment) in the Allowance for Doubtful Accounts should be the one listed below. a.$331 b.$756 c.$344 d.$743