Question

QUESTION ONE Mona Kamaka, CPA, was retained by Downtown TV Repair Ltd. To prepare financial statements for the year ended March 31, 20X2. Mona accumulated all the ledger balances from the business records and found the following: DOWNTOWN TV REPAIR LTD. Adjusted Trial Balance March 31, 20X2 Credit Debit $ 62,000 45,000 Cash Accounts receivable 9,000 Supplies Equipment Accumulated depreciation equipment 150,000 $ 30,000 59,500 Accounts payable 6,000 Salaries and wages payable 15,000 Unearned revenue 100,000 Common shares Retained earnings 46,600 Dividends declared 5,000 VService revenue Salaries and wages expense Advertising expense Utilities expense 80,000 36,000 8,000 3,100 VDepreciation expense V Repairs and maintenance expense 7,000 12.000 $337,100 $337,100 Mona reviewed the records and found the following errors; 1. Cash received from a customer on account was recorded on March 2, 20X2 as $5,700 correct amount of cash received was $7,500. The 2. The purchase, on account, of equipment on March 31, 20X2 that cost $9,000 a debit to Supplies and a credit to Accounts payable for $9,000, was recorded as

i need the solution for this question

Answer 1

1	Journal entries in the books of Downtown Repairs Ltd								(Amt in $)
	Incorrect entry				Correct entry			Correcting entry
1	March 2, 20X2	Cash A/c Dr (BS)	5700		Cash A/c Dr (BS)	7500		Cash A/c Dr (BS)	1800
		To Accounts receivable (BS)		5700	To Accounts receivable (BS)		7500	To Accounts receivable (BS)		1800
2	March 30, 20X2	Supplies A/c Dr (BS)	9000		Equipment A/c Dr (BS)	9000		Equipment A/c Dr (BS)	9000
		To Accounts payable (BS)		9000	To Accounts payable (BS)		9000	To Supplies A/c Dr (BS)		9000
3	Janaury, 20X2	Utilities Expense Dr (IS)	300		Advertisement Expense Dr (IS)	300		Advertisement Expense Dr (IS)	300
		To Cash A/c (BS)		300	To Cash A/c (BS)		300	To Utilities Expense Dr (IS)		300
4	April 30, 20X1	Salaries and wages Dr (IS)	18000		Salaries and wages payable Dr (BS)	6000		Salaries and wages payable Dr (BS)	6000
		To Cash A/c (BS)		18000	Salaries and wages Dr (IS)	12000		To Salaries and wages Dr (IS)		6000
					To Cash A/c (BS)		18000
5	March 31, 20X2	Equipment A/c Dr (BS)	900		Repairs and maintenance Dr (IS)	900		Repairs and maintenance Dr (IS)	900
		To Cash A/c (BS)		900	To Cash A/c (BS)		900	To Equipment A/c Dr (BS)		900

2	Corrected adjusted trial balance as on March 31, 20X2
					(Amt in $)
	Downtown Repair Ltimited
			Debit	Credit	Reason for change
		Cash	63800		Entry 1. Less cash receipt accounted
		Accounts receivable	43200		Entry 1. Less cash receipt accounted
		Supplies	0		Entry 2 - Equipment purchased debited to supplies
		Equipment	158100		Entry 2 - Equipment purchased debited to supplies                                     Entry 5 - Repairs debited to equipment
		Accumulated depreciation - Equipment		30000
		Accounts payable		59500
		Salaries and wages payable		0	Entry 4 - salaries payable debited to exp wrongly now rectified
		Unearned revenue		15000
		Common shares		100000
		Retained earnings		46600
		Dividends declared	5000
		Service revenue		80000
		Salries and wages expense	30000		Entry 4 - salaries payable debited to exp wrongly now rectified
		Advertising expense	8300		Entry 3 - Advertising expenses debited to utilities
		Utilities Expense	2800		Entry 3 - Advertising expenses debited to utilities
		Depreciation expense	7000
		Repairs and maintenance expense	12900		Entry 5 - Repairs debited to equipment
		TOTAL	331100	331100
3		Downtown Repairs Limited
		Income statement for the year March31, 20X2
		Particulars		Amt in $
		Service revenue		80000
		Less: Expenses
		Salries and wages expense	30000
		Advertising expense	8300
		Utilities Expense	2800
		Depreciation expense	7000
		Repairs and maintenance expense	12900	61000
		Net profit		19000
		Downtown Repairs Limited
		Retained earning statement for the year ended March31, 20X2
				Amt in $
		Opening retaiend earnings		46600
		Add: Profit during the period		19000
		Less: Dividend		5000
		Closing retained earnings		60600
		Downtown Repairs Limited
		Balance sheet for the year ended March31, 20X2
				Amt in $
		ASSETS
		Non current Asset
		Equipment (net)		128100
		Current Assets
		Cash		63800
		Accounts receivables		43200
		TOTAL ASSETS		235100
		LIABILITES
		Stockholders Equity
		Common shares		100000
		Retained earnings		60600
				160600
		Current liabilities
		Accounts payable		59500
		Unearned revenue		15000
				74500
		TOTAL LIABILITIES		235100