I-02.06 Problem

I-02.06 Problem - 9,000-326,149 $ 3,049,333 $ Error 1 All...

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I-02.06 The following trial balance for Williams Corporation does not balance. You have conducted an extensive review to help Laura Williams find the nature of the problem. Below the trial balance is information about six errors you have discovered. Use the additional information to prepare a corrected trial balance. WILLIAMS CORPORATION Trial Balance December 31, 20X1 Debits Credits Cash 123,432 $ $ - Accounts Receivable 76,409 - Land - 688,004 Accounts Payable - 32,611 Loan Payable 76,400 Capital Stock - 340,000 Retained Earnings 456,332 Revenues - 879,998 Wages Expense - 575,988 Rent Expense 112,654 - Interest Expense 4,654 - Dividends
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Unformatted text preview: 9,000-326,149 $ 3,049,333 $ Error # 1 All accounts have normal balances, but two amounts are in wrong columns! Error # 2 Services provided on account for $1,500 was debited to Accounts Payable and credited to Revenues. Error # 3 Supplies Expense of $104,300 was completely omitted from the trial balance. Error # 4 The amount recorded for Revenues was transposed. It should have been $789,998. Error # 5 A $5,000 shareholder investment was debited to Cash and credited to Dividends. Error # 6 An interest payment of $1,000 was debited to Loan Payable for $100 and credited...
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.

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