Question

Question 6 --/5 View Policies Current Attempt in Progress The following trial balance of Metlock Company does not balance. Your review of the ledger reveals the following. (a) Each account had a normal balance. (b) The debit footings in Prepaid Insurance, Accounts Payable, and Property Tax Expense were each understated $92. (c) A transposition error was made in Accounts Receivable and Service Revenue; the correct balances for Accounts Receivable and Service Revenue are $2.640 and $6.790, respectively. (d) A debit posting to Advertising Expense of $307 was omitted. (e) A $1,370 cash drawing by the owner was debited to Owner's Capital and credited to Cash. Metlock Company Trial Balance April 30, 2020 Debit Credit Cash $4360 Accounts Receivable 2.460 Prepaid Insurance 766 Equipment $7,310 4.280 Accounts Payable Property Tax Payable Owner's Capital 10.295 Service Revenue 6,970 Salaries and Wages Expense 4281 1.110 Advertising Expense Property Tax Expense 360 $2492 $22,745 Prepare a correct trial balance

Answer 1

Sheffield Resort Adjusting Enteries Date Particulars 31.8.2020 Insurance Expense a/c Dr. To Prepaid Insurance (Insurance expensed) 9600 x 3/12 Debit in $ Credit in $ 2400 2400 7233 31.8.2020 Supplies Expense a/c Dr. To Supplies (Supplies expensed) 7700 - 467 7233 31.8.2020 Depreciation Expense a/c Dr. 1240 To Accum. Depre - Build (To record depreciation) 124000 x 4% x 3/12 1240 500 31.8.2020 Depreciation Expense a/c Dr. To Accum. Depre-Equip. (To record depreciation) 20000 x 10% x 3/12 500 3476 31.8.2020 Unearned Rent Revenue a/c Dr. To Rent Revenue (Rent Revenue earned) 3476 346 31.8.2020 Salaries and Wages Expense a/c Dr. To Salaries and Wages Payable (Salary accrued) 346

Worksheet For the month ending 31.8.2020 Particulars Cash Prepaid Insurance Supplies Land Buildings Accum. Depre - Build Equipment Accum. Depre - Equip. Accounts Payable Unearned Rent Revenue Salaries and Wages Payable Mortgage Payable Common Stock Retained Earnings Dividends Rent Revenue Salaries and Wages Expense Utilities Expense Maintenance and Repairs expense Insurance Expense Supplies Expense Depreciation Expense Totals Unadjusted Adjustment Adjusted Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ 24700 24700 9600 2400 7200 7700 7233 467 24000 24000 124000 124000 1240 1240 20000 20000 500 500 9600 9600 9700 3476 6224 346 346 64000 64000 100100 100100 9000 9000 5000 5000 80200 3476 83676 44800 346 45146 9200 9200 3600 3600 2400 2400 7233 7233 1740 1740 272600 272600 15195 1 5195 274686 274686 83676 Statement of Income For the month ending 31.8.2020 Rent Revenue Less: Salaries and Wages Expense Utilities Expense Maintenance and Repairs expense Insurance Expense Supplies Expense Depreciation Expense Net Income 45146 9200 3600 2400 7233 1740 69319 14357 Statement of Retained Earnings For the month ending 31.8.2020 Beginning Balance Net Income 9000 14357 23357 -5000 18357 Dividends

Amounts in $ Amounts in $ Balance sheet As at 31.8.2020 Assets Current Assets Cash Prepaid Insurance Supplies Amounts in $ Amounts in $ Liabilities Current Liabilities 24700 Accounts Payable 7200 Unearned Rent Revenue 467 32367 Salaries and Wages Payable 9600 6224 346 16170 Non Current Liabilities 24000 Mortgage Payable 64000 Non Current Assets Land Buildings Accum. Depre - Build Equipment Accum. Depre - Equip. Total Assets 124000 -1240 20000 -500 122760 Shareholders Equity Common Stock 19500 Retained Earnings 198627 Total Liabilities & Equity 100100 18357 118457 198627