Question

it looks like one of the rxpert said its not completed but this is all the info that i have and its complete. please answer all the questions, they all connected to each other.

Mastery Problem: Analyzing Transa KL Company Taccounts Transactions Tral Balance: Unequal Totals Trial Balance: Correct Errors in Trial Balance KL Company Katie Long owns and operates KL Company Transactions for the month of March have been posted to the accounts An intern has prepared a trial balance from the Taccounts but there seem to be Required: 1. In the Transactions panel scriptions of the transactions for the month of March are provided Each of the transactions in the Transactions panel has been posted to the accounts Referring to the accounts, select the date on which each transaction occurred aster the amount of the transaction, and select the account to debit and credit 2 The trial balance prepared by the intern can be found in the Trial Balance: Uneque Toats p el The nem is puzzled by the unequal totals. Prepare a corrected trial balance on the Thal Balance Correct panel 3. Compare the balance prepared by the internal Balance. Unequal Tofats) to the balance that you p wed (The Balance Correct) Use the table provided in the Errors in Trial Balance panel to select the accounts for each type of error The intern is puzzled and asks "Are you sure the accounting equation is in balance ?" Using the corrected balance you prepared prove that the accounting equation is in balance Shpuzzled, the intem asks "Why do none of the amounts in the accounting equation e w the totals on the trial balance ? Explain

Answer 1

Ans.

Unadjusted Trial Balance of KL Company as on 31-03-2018

Sl	Account Title	Debit	Credit
1	Cash	24,075
2	Account Receivables	2,200
3	Supplies	1,500
4	Equipment	17,000
5	Accounts Payable		300
6	Notes Payable		17,000
7	Katie Long, Capital		17,600
8	Katie Long, Drawings	1,850
9	Fees Earned		17,900
10	Rent Expenses	2,600
11	Wage Expenses	3,575
	Total	52,800	52,800

None of the amounts in accounting equation matches with the total of trial balance because:

(i) The accounts with debit balances are not all classified in the same element of accounting equation. Not all accounts with debit balances are assets.

(ii) The amounts that makes up for owner's equity consists of both debit and credit transactions.

(iii) The accounts with credit balances are not all classified in the same element of accounting equation. Not all accounts with credit balances are liabilities.