In: Accounting
The Lexington Group has the following unadjusted trial balance as of May 31, 2018:
The Lexington Group
UNADJUSTED TRIAL BALANCE
May 31, 2018
ACCOUNT TITLE | DEBIT | CREDIT | |
---|---|---|---|
1 |
Cash |
20,350.00 |
|
2 |
Accounts Receivable |
37,000.00 |
|
3 |
Supplies |
1,100.00 |
|
4 |
Prepaid Insurance |
200.00 |
|
5 |
Equipment |
171,175.00 |
|
6 |
Notes Payable |
36,000.00 |
|
7 |
Accounts Payable |
26,000.00 |
|
8 |
Common Stock |
50,000.00 |
|
9 |
Retained Earnings |
94,150.00 |
|
10 |
Dividends |
15,000.00 |
|
11 |
Fees Earned |
429,850.00 |
|
12 |
Wages Expense |
270,000.00 |
|
13 |
Rent Expense |
63,000.00 |
|
14 |
Advertising Expense |
25,200.00 |
|
15 |
Miscellaneous Expense |
5,100.00 |
|
16 |
Totals |
608,125.00 |
636,000.00 |
The debit and credit totals are not equal as a result of the following errors:
A. | The cash entered on the trial balance was overstated by $7,000. |
B. | A cash receipt of $8,200 was posted as a debit to Cash of $2,800. |
C. | A debit of $16,500 to Accounts Receivable was not posted. |
D. | A return of $125 of defective supplies was erroneously posted as a $1,250 credit to Supplies. |
E. | An insurance policy acquired at a cost of $3,600 was posted as a credit to Prepaid Insurance. |
F. | The balance of Notes Payable was understated by $9,000. |
G. | A credit of $10,000 in Accounts Payable was overlooked when determining the balance of the account. |
H. | A debit of $5,000 for dividends was posted as a credit to Retained Earnings. |
I. | The balance of $60,300 in Rent Expense was entered as $63,000 in the trial balance. |
J. | Gas, Electricity, and Water Expense, with a balance of $16,350, was omitted from the trial balance. |
Required: | |
1. | Prepare a corrected unadjusted trial balance as of May 31, 2018. |
The Lexington Group
UNADJUSTED TRIAL BALANCE
Score: 0/67
May 31, 2018
ACCOUNT TITLE | DEBIT | CREDIT | |
---|---|---|---|
1 |
Cash |
||
2 |
Accounts Receivable |
||
3 |
Supplies |
||
4 |
Prepaid Insurance |
||
5 |
Equipment |
||
6 |
Notes Payable |
||
7 |
Accounts Payable |
||
8 |
Common Stock |
||
9 |
Retained Earnings |
||
10 |
Dividends |
||
11 |
Fees Earned |
||
12 |
Wages Expense |
||
13 |
Rent Expense |
||
14 |
Advertising Expense |
||
15 |
Gas, Electricity, and Water Expense |
||
16 |
Miscellaneous Expense |
||
17 |
Totals |
The Lexington Group
Unadjusted Trial Balance
May 31, 2018
ACCOUNT TITLE |
Adjustments |
DEBIT |
CREDIT |
|
1 |
Cash |
20350-7000 + 5400 |
$18750 |
|
2 |
Accounts Receivable |
37000+16500 |
$53500 |
|
3 |
Supplies |
1100+1125 |
$2225 |
|
4 |
Prepaid Insurance |
200+3600+3600 |
$7400 |
|
5 |
Equipment |
$171175 |
||
6 |
Notes Payable |
36000+9000 |
$45000 |
|
7 |
Accounts Payable |
26000+10000 |
$36000 |
|
8 |
Common Stock |
$50000 |
||
9 |
Retained Earnings |
+94150-5000 |
$89150 |
|
10 |
Dividends |
+15000+5000 |
$20000 |
|
11 |
Fees Earned |
$429850 |
||
12 |
Wages Expense |
$270000 |
||
13 |
Rent Expense |
$60300 |
||
14 |
Advertising Expense |
$25200 |
||
15 |
Gas, Electricity, and Water Expense |
$16350 |
||
16 |
Miscellaneous Expense |
$5100 |
||
17 |
Totals |
$650000 |
$650000 |