Sunday, 19 June 2016

The following preliminary unadjusted trial balance of Ranger Co., a sports ticket agency, does not balance:

The following preliminary unadjusted trial balance of Ranger Co., a sports ticket agency, does not balance:


Ranger Co. Unadjusted Trial balance August 31, 2014

Debit  balances
Credit  balances
Cash ............................................................ 77,600 Accounts Receivable.............................................. 37,750 Prepaid Insurance ................................................ 12,000 Equipment....................................................... 19,000 Accounts Payable ................................................ 29,100 Unearned Rent................................................... 10,800 Carmen Meeks, Capital ........................................... 110,000 Carmen Meeks, Drawing .......................................... 13,000 Service Revenue ................................................. 385,000 Wages Expense .................................................. 213,000 Advertising Expense.............................................. 16,350 Miscellaneous Expense ........................................... 18,400 273,700 668,300


When the ledger and other records are reviewed, you discover the following: (1) the debits and credits in the cash account total $77,600 and $62,100, respectively; (2) a billing of $9,000 to a customer on account was not posted to the accounts receivable account; (3) a payment of $4,500 made to a creditor on account was not posted to the accounts payable account; (4) the balance of the unearned rent account is $5,400; (5) the correct balance of the equipment account is $190,000; and (6) each account has a normal balance.

Prepare a corrected unadjusted trial balance.

Answer:

RANGER CO.  Unadjusted Trial Balance August 31, 2014  Debit Balances 
Credit Balances 
Cash 15,500  Accounts Receivable 46,750  Prepaid Insurance 12,000  Equipment 190,000  Accounts Payable  24,600 Unearned Rent  5,400 Carmen Meeks, Capital  110,000 Carmen Meeks, Drawing 13,000  Service Revenue  385,000 Wages Expense 213,000  Advertising Expense 16,350  Miscellaneous Expense 18,400   525,000 525,000 

No comments:

Post a Comment