Question

Mastery Problem: Analyzing Transactions KL Company Inc. In February, Katie Long formed KL Company Inc. Transactions for the month of March have been posted to the T accounts. An intern has prepared a trial balance from th T accounts, but there seem to be some errors. T accounts Bal. 3/25 3/28 3/30 Cash 8,000 3/3 7,425 3/27 4,500 3/29 7,825 3/31 2,300 1,275 3,625 1,875 Bal. Accounts Receivable 1,950 9,875 3/30 7,825 3/18 Bal 3/7 Supplies 225 1,450 Office Equipment 19,000 3/2 Dewable

Answer 1

Date Transacion Purchased equipment giving Notes payable Paid rent Purchased supplies on account Fees recorded on account Fee received by cash Paid creditors Issued common stock Paid wages Received from customers Paid dividend Amount Debit Credit 19000 Equipment Notes payable 2300 Rent exp. Cash 1450 Supplies Acct.Payable 9875 Acct. Receivable Fee Earned 7425 Cash Fee Earned 1450 Acct.Payable Cash 4500 Cash Common Stock 3625 Wages Cash 7825 cash Acct. Receivable 1875 Dividend Cash

Unadjusted Trial Balance as on 31 March 2013 Account Title Debit Credit Cash 18675 Account Receivable 4000 Supplies 1675 Ofice Equipment 19000 Account Payable 1425 Note Payable 19000 CommonStock 12000 Retained earnings 1425 Dividend 1875 Fee Earned 17300 Rent expense 2300 WagesExpense 3625 Total 51150 51150

Account Account receivable Error type Cash Wages Expense Payable Reained Earnings Rent Fee Dividend expense Earned Yes Yes Yes Transposition Incorrecedly repored as debit Incorrecedly repored as credit Balance computed incorrectly Yes Yes Yes Yes Yes

The income fee earned and expense like rent, wages and Dividend paid are not part of accounting equation. The Net amount is part of retained earnings. Then the equation will agree.

Note. It took around 2 hours , so please put the date of transactions in analysis.