The Lexington Group has the following unadjusted trial balance as of May 31, 2018:

Account Title Debit Credit

Cash 20,350

Accts Rcvble. 37,000

Supplies 1,100

PPd. Ins. 200

Equipment 171,175

Notes Payable 36,000

Accounts Payable 26,000

Common Stk. 50,000

Ret. Earn 94,150

Dividends 15,000

Fees Earned 429,850

Wages expense 270,000

Rent expense 63,000

Advertising exp 25,200

Misc .exp 5,100

Totals 608,125 636,000

 

he 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.

 

1. Show a corrected unadjusted trial balance as of May 31, 2018.2. Does the fact that the unadjusted trial balance in (1) is balanced mean that there are no errors in the accounts?

SuperTutor

(15)

Status NEW Posted 11 Jul 2017 08:07 AM My Price 9.00

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