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Tuesday, 17 September 2013

The accounting records of Fabiano Distribution show the following assets and liabilities as of December 31, 2010 and 2011. December 31 2010 2011 Cash $ 44,557 $ 6,968 Accounts receivable 24,186 18,962 Office supplies 3,815 2,794 Office equipment 117,114 124,749 Trucks 45,828 54,828 Building 0 152,772 Land 0 38,123 Accounts payable 63,585 31,536 Note payable 0 90,895 Late in December 2011, the business purchased a small office building and land for $190,895. It paid $100,000 cash toward the purchase and an $90,895 note payable was signed for the balance. Mr. Fabiano had to invest $37,000 cash in the business in exchange for stock to enable it to pay the $100,000 cash. The business also pays $2,600 cash per month for dividends.

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The accounting records of Fabiano Distribution show the following assets and liabilities as of December 31, 2010 and 2011. December...

Posting errors are identified below. For each item complete parts 1 through 4 described below: 1. Enter the amount of the difference between the two trial balance columns (debit and credit) due to the error. 2. Identify the trial balance column (debit or credit) with the larger amount if they are not equal. 3. Identify the account(s) affected by the error. 4. Indicate the amount by which the account(s) in column (3) is under- or overstated. Item (a) is completed as an example. a. $1,750 debit to Rent Expense is posted as a $1,570 debit. (1) Difference between Debit and Credit Columns $180 (2) Column with the Larger Total Credit (3) Identify account(s) incorrectly stated Rent Expense (4) Amount that account(s) is overstated or understated Rent Expense is understated by $180

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Posting errors are identified below. For each item complete parts 1 through 4 described below:        1. ...