Solution manual fundamentals of accounting by cabrera chapter 09

Pongky’s Sanitize Services Co.Work Sheet For the Year Ended December 31, 2008 Trial Balance Adjustments Adjusted Trial Balance Debit Credit Debit Credit Debit Credit Accumulated deprecia

Exercises

Exercise 1

a The error will overstate the debits by P4,500 or understate the credits by P4,500

b The total debits will still be equal to the total credits But accounts payable will be overstated by P2,000 while accounts receivable will be overstated by P2,000

c The total debits will still be equal to the total credits but both totals will be understated by P5,040

d The total debits will still be equal to the total credits However, equipment will

be understated by P6,000 while supplies will be overstated by P6,000

Exercise 2

Unadjusted Trial Balance Corrections Corrected Trial Balance

Jun Gomez,

217,660 227,200 Note payable

(g) 24,000 24,000

237,400 237,400

Exercise 3

5 b – debit column 10 b – debit column

Exercise 4

Exercise 5

Exercise 6

d 7

Pongky’s Sanitize Services Co.

Work Sheet For the Year Ended December 31, 2008

Trial Balance Adjustments Adjusted Trial Balance Debit Credit Debit Credit Debit Credit

Accumulated depreciation

Exercise 8

A/N: Please change column headings to Adjusted Trial Balance, Income Statement and Balance Sheet, respectively.

Sandy’s Sanitize Services Co

Work Sheet For the Year Ended December 31, 2008

Adjusted Trial Balance Income Statement Balance Sheet Debit Credit Debit Credit Debit Credit

Accumulated depreciation

PUB Service Co.

Statement of Owner’s Equity For the year ended December 31, _

1,770,000

Exercise 10

Errors

1 Balance Sheet should be as at August 31, 2008

2 Accounts payable should be listed in the current liabilities section

3 Land should be under the Property, Plant and Equipment section

4 Accumulated depreciation for Building and Equipment should be shown as contra-asset accounts in the PPE section

5 Accounts receivable should be listed among the current asset accounts

6 Net loss should be deducted from P Candelaria, capital account

7 Wages payable should be listed among the current liabilities accounts

Sixteen Candles Company Balance Sheet (as corrected) August 31, 2008 Assets Current Assets

Property, Plant and Equipment

Liabilities and Owner’s Equity Current Liabilities

Owner’s Equity

There is a difference between the total assets and total liabilities and owner’s equity of P155,000 One possible explanation is since the “net loss” account has

a credit balance of P155,000 and just erroneously included in the current liabilities section, then this could in reality be “net income” which should be added

to the capital account

Green Badge Service Preparation of Adjusted Trial Balance

October 31, 2007

Trial Balance Adjustments Adjusted Trial Balance Debit Credit Debit Credit Debit Credit

(e) 2,100

Multiple Choice Questions

Test Material

Test Material 9-1

Requirement (1)

Gabriel Liwayway, Speech Therapist

Trial Balance October 31, 2008

Trial Balance Adjustments Adjusted Trial Balance Debit Credit Debit Credit Debit Credit

_

* P8,000  4 = P2,000

** P30,000  5 = P6,000  12 = P500

*** P4,000  5 = P800

Requirement (2)

Gabriel Liwayway, Speech Therapist

Income Statement For the Month Ended October 31, 2007 Revenues:

Expenses:

Gabriel Liwayway, Speech Therapist Statement of Owner’s Equity For the Month Ended October 31, 2007

83,300

Gabriel Liwayway, Speech Therapist

Balance Sheet October 31, 2007

Less: Accum depr 6,500 23,500 Gabriel Liwayway, capital 76,100

Total liabilities and

Test Material 9-3

Lorenzo Anicete, Attorney Preparation of Adjusted Trial Balance

July 31, 2008

Trial Balance Adjustments Adjusted Trial Balance Account Title Debit Credit Debit Credit Debit Credit

_

* P7,200  4 = P1,800

** P33,600  4 = P8,400  12 = P700

*** P2,000  5 = P400

Requirement (2)

Lorenzo Anicete, Attorney Income Statement For the Month Ended July 31, 2007 Revenues:

Expenses:

Lorenzo Anicete, Attorney Statement of Owner’s Equity For the Month Ended July 31, 2007

87,000

Lorenzo Anicete, Attorney Balance Sheet July 31, 2007

Less: Accum depr 7,700 25,900 Lorenzo Anicete, capital 79,000

Total liabilities and