The trial balance of Gamo 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 Br. 1,000. (c) A transposition error was made in Accounts Receivable and Service Revenue; the correct balances for Accounts Receivable and Service Revenue are Br. 2,750 and Br. 6,690, respectively. (d) A debit posting to Advertising Expense of Br. 300 was omitted. (e) A Br.
3,200 cash drawing by the owner was debited to Geronimo, Capital, and credited to Cash.
Gamo Company Trial Balance April 30, 2015
Cash
Accounts Receivable Prepaid Insurance Equipment
Accounts Payable Property Tax Payable Gamo, Capital Service Revenue Salaries Expense Advertising Expense
Property Tax Expense
Debit
Credit
Br. 2,100
2,570
700
560
6,960
4,200
1,100
.
Br. 18,190
Br. 8,000
4,500
11,200
800
Br. 24,500
Required: Prepare a correct trial balance.
The trial balance of Gamo 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 Br. 1,000. (c) A transposition error was made in Accounts Receivable and Service Revenue; the correct balances for Accounts Receivable and Service Revenue are Br. 2,750 and Br. 6,690, respectively. (d) A debit posting to Advertising Expense of Br. 300 was omitted. (e) A Br.
3,200 cash drawing by the owner was debited to Geronimo, Capital, and credited to Cash.
Gamo Company Trial Balance April 30, 2015
Cash
Accounts Receivable Prepaid Insurance Equipment
Accounts Payable Property Tax Payable Gamo, Capital Service Revenue Salaries Expense Advertising Expense
Property Tax Expense
Debit
Credit
Br. 2,100
2,570
700
560
6,960
4,200
1,100
.
Br. 18,190
Br. 8,000
4,500
11,200
800
Br. 24,500
Required: Prepare a correct trial balance.
Related questions
Presented here are the accounts of
Town and Country RealtyTown and Country Realty
for the year ended
DecemberDecember
Land | $10,000 | Owner contribution, 2018 | $36,000 | |
Notes Payable | 29,000 | Accounts Payable | 10,000 | |
Property Tax Expense | 2,400 | Accounts Receivable | 1,300 | |
Hicks, Withdrawals | 36,000 | Advertising Expense | 12,000 | |
Rent Expense | 8,000 | Building | 194,800 | |
Salaries Expense | 63,000 | Cash | 2,200 | |
Salaries Payable | 800 | Equipment | 13,000 | |
Service Revenue | 235,000 | Insurance Expense | 1,800 | |
Office Supplies | 9,000 | Interest Expense | 7,300 | |
Hicks, Capital, Dec. 31, 2017 | 50,000 |
PrintDone
3131â,
20182018.
LOADING...
â(Click the icon to view theâ accounts.)
Requirements
1. | Prepare Town and Country Realty'sTown and Country Realty's income statement. |
2. | Prepare the statement ofâ owner's equity. |
3. | Prepare the balance sheet. |
Requirement 1. Prepare
Town and Country Realty'sTown and Country Realty's
income statement.
Town and Country Realty | ||||
Income Statement | ||||
Year Ended December 31, 2018 | ||||
Revenues: | ||||
Service Revenue | ||||
Expenses: | ||||
Salaries Expense | ||||
Insurance Expense | ||||
Advertising Expense | ||||
Rent Expense | ||||
Interest Expense | ||||
Property Tax Expense | ||||
Total Expenses | ||||
Net Income | ||||
Prepare adjusting journal entries and an adjusted trialbalance.
| Ad MenAdvertising, Inc. Trial Balance November 30, 2012 | ||
| Account | Debit | Credit |
| Cash | $ 30,100 | |
| Accounts Receivable | 22,800 | |
| Prepaid Insurance | 2,700 | |
| Supplies | 1,200 | |
| Equipment | 59,000 | |
| Accumulated Depreciation, Equipment | $ 50,000 | |
| Accounts Payable | 3,100 | |
| Salaries Payable | ||
| Unearned Service Revenue | 2,900 | |
| Common Stock | 25,000 | |
| Retained Earnings | 25,300 | |
| Dividends | 1,000 | |
| Service Revenue | 13,900 | |
| Salaries Expense | 3,400 | |
| Insurance Expense | ||
| Depreciation Expense, Equipment | ||
| Utilities Expense | ||
| Supplies Expense | ||
| Total | $120,200 | $120,200 |
Insurance coverage still remaining at November 30, $700.
Supplies used during the month, $400.
Depreciation for the month, $3,400.
Accrued utilities expense at November 30, $700. (use AccountsPayable as the liability account needed)
Accrued salaries at November 30, $1,000.
Service revenue still unearned at November 30, $1,300.
Part A
Open T-accounts for the accounts listed in the trial balance andinsert their November 30 unadjusted balances. Journalize theadjusting entries and post them to the T-accounts. Reference theposted amounts by letter, (a) through (f). Calculate the adjustedbalance in each account.
Part B
Prepare the adjusted trial balance at November 30, 2012.
Part C
How will the company use the adjusted trial balance?
