Question

11:30 7974% March 1, 2003 Britain area Great time 2122 310 . Conne Dividende Feedback Check My Work Compute the account balances in the Taccounts first Errors on Trial Balance Compare the trial balance prepared by the intern (Trial Balance Unequal Totals) to the trial balance that you prepared (Trial Balance: Correct). In the following table, select the accounts for each type of error. Not all accounts contain errors. Feedback Check My Wor To determine which accounts were incorrectly reported as a debitor credit think about the normal balance of an account as well as computing the account balance in the T account. Accounting Equation The inter is puzzled and asks "Are you sure the accounting equation is still in balance? Using the corrected trial balance you prepared prove that the accounting equation is in balance Still puzzled, the intern asks "Why do none of the amounts in the III o

Answer 1

1. Accounting Equation -

Accounting Equation Assets II Liabilities + Shareholder's Equity $ 25,350 $ 44,950 $ 19,600 $

2. Trial Balance -

Credit Trial Balance Accounts Title Debit Cash $ 21,225 Accounts Receivable $ 3,850 Supplies $ 1,875 Office Equipment $ 18,000 Accounts Payable Notes Payable Common Stock Retained Earnings $ 1,600 $ 18,000 $ 14,000 $ 11,350 Total $ 44,950 $ 44,950

3. Explanation -

If you are getting the error from the trail balance you are showing then we have to close the retained earnings account to balance the total of the correct amount.

Due to temporary accounts in trial balance our trial balance getting different balance.

If we transfer revenue and expenses into retained earnings then we can get the correct balance.