the old man and the sea
7. Using the quick tests for locating errors, find the error in each of the two questions below. Describe the type of error, explain how you discovered it, and make corrections. a) 7. a) (cont.) Explanation of error and how you found it A transposition error was found in the Expense account ($250, not $205). The trial balance discrepancy of $45 was divided by 9, and the result was an even amount.
Therefore, a transposition error was possible, so a search was begun. b) 7. b) (cont.)
Explanation of error and how you found it The balance in the Bank account was subtracted incorrectly; it should be $3 505. The trial balance discrepancy was a multiple of ten, indicating an addition error. Amounts were added again. 8. Post the journal entries in the ledger accounts on the next page for Sheila McFarlane, a lawyer, and take off a trial balance on the form provided. GST and PST accounts are not included. 8. (cont.)
LEDGER
8. (cont.)
8. (cont.)
4. Kathy Morris owns a small decorating business called Premium Decorating. A partially completed work sheet for Premium Decorating and additional information follow directly. Additional Information 1. Purchase invoices received in January 20-3, which pertain to goods or services received in 20-2, are for the following: Telephone Expense $102 Car Expense 389 Supplies 250 2. The supplies counted and valued as of December 31, 20-2, are $980. 3. The unexpired insurance at December 31, 20-2, amounted to $1 040. 4. a) Using the additional information above, complete the eight-column work sheet. GST accounts are not to be considered. 4. b) Prepare the four closing journal entries for Premium Decorating as of December 31, 20-2.
Omit explanations. c) Assuming all entries have been posted, calculate the ending Capital balance for Premium Decorating as of December 31, 20-2, in the account
Therefore, a transposition error was possible, so a search was begun. b) 7. b) (cont.)
Explanation of error and how you found it The balance in the Bank account was subtracted incorrectly; it should be $3 505. The trial balance discrepancy was a multiple of ten, indicating an addition error. Amounts were added again. 8. Post the journal entries in the ledger accounts on the next page for Sheila McFarlane, a lawyer, and take off a trial balance on the form provided. GST and PST accounts are not included. 8. (cont.)
LEDGER
8. (cont.)
8. (cont.)
4. Kathy Morris owns a small decorating business called Premium Decorating. A partially completed work sheet for Premium Decorating and additional information follow directly. Additional Information 1. Purchase invoices received in January 20-3, which pertain to goods or services received in 20-2, are for the following: Telephone Expense $102 Car Expense 389 Supplies 250 2. The supplies counted and valued as of December 31, 20-2, are $980. 3. The unexpired insurance at December 31, 20-2, amounted to $1 040. 4. a) Using the additional information above, complete the eight-column work sheet. GST accounts are not to be considered. 4. b) Prepare the four closing journal entries for Premium Decorating as of December 31, 20-2.
Omit explanations. c) Assuming all entries have been posted, calculate the ending Capital balance for Premium Decorating as of December 31, 20-2, in the account