Question-   Hickory Furniture Company Unadjusted Trial balance

Solution-

Ex2-16

Hickory Furniture Company

Unadjusted Trial balance

 

Debit

Credit

Cash

33320

 

Accounts Receivable

116900

 

Supplies

4275

 

Prepaid Insurance

21600

 

Land

50000

 

Accounts Payable

 

42770

Unearned Rent

 

12000

Notes Payable

 

50000

Common Stock

 

15000

Retained Earnings

 

60000

Dividends

24000

 

Fees earned

 

745230

Wages Expense

580700

 

Rent Expense

48000

 

Utilities Expense

26850

 

Supplies Expense

6255

 

Insurance expense

3600

 

Miscellaneous expense

9500

 

 

925,000

925,000

 

Ex 2-17

Although it is not a correcting entry, the entry that was not made in (a) should also be entered in the journal.

Inequality of trial balance totals would be caused by errors described in (c) and (e).

For (c), the debit total would exceed the credit total by $9,900 ($4,950 + $4,950).

For (e), the credit total would exceed the debit total by $17,100 ($19,000 – $1,900).

Errors (b), (d), and (e) would require correcting entries.

Ex 2-18

 

Debit

Credit

Cash

15500

 

Accounts Receivable

46750

 

Prepaid insurance

12000

 

Equipment

190000

 

Accounts Payable

 

24600

Unearned Rent

 

5400

Carmen Meeks Capital

 

110000

Carmen Meeks Drawings

13000

 

Service revenue

 

385000

Wages expense

213000

 

Advertising expense

16350

 

Miscellaneous expense

18400

 

 

525000

525000

 

Ex 2-2A

The Colby Group

Unadjusted Trial Balance

 

Debit

Credit

Cash

22400

 

Accounts Receivable

48000

 

Supplies

8750

 

Prepaid insurance

4300

 

Equipment

196000

 

Notes Payable

 

117600

Accounts Payable

 

30800

Terry Colby Capital

 

122150

Terry Colby Drawings

63000

 

Fees earned

 

454450

Wages exp

270000

 

Rent exp

58100

 

Advertising exp

25200

 

Gas, water exp

24150

 

Miscellaneous exp

5100

 

 

725000

725000

 

No, the trial balance only indicates that debit and credit are equal. Any errors that have the same effect on debit and credit will not affect the trial balance.

Ex 2-22

a)

Cash

17600

 

Fees Earned

 

8800

Accounts Receivable

 

8800

 

b)

Accounts payable

1760

 

Supply exp

 

1760

 

Supplies

1760

 

cash

 

1760

 

Ex 2-23

a)


1. Revenue:
$2,033 million increase ($67,390 – $65,357)
3.1% increase ($2,033 ÷ $65,357)

2. Operating expenses:
$1,454 million increase ($62,138 – $60,684)
2.4% increase ($1,454 ÷ $60,684)

3. Operating income:
$579 million increase ($5,252 – $4,673)
12.4% increase ($579 ÷ $4,673)

b. During the recent year, revenue increased by 3.1%, while operating expenses increased by only 2.4%. As a result, operating income increased by 12.4%, a favorable trend from the prior year
.

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