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    GSLC Acct6300 Week 3 Session 6

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    Whisky XD
    This document provides information for an accounting course discussion on completing the accounting cycle. It includes two practice exercises analyzing and correcting accounting errors. The first asks students to correct errors made in January 2020 by Natt Spa by reversing the incorrect entries or without reversing. The second provides errors found by an accountant in Pulsar Cable's April 2020 records, asking students to analyze each error and prepare correcting entries and a correct trial balance. The document provides detailed instructions and ledger balances to guide students in the exercises.

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    GSLC Acct6300 Week 3 Session 6

    Uploaded by

    Whisky XD
    130 views2 pages
    This document provides information for an accounting course discussion on completing the accounting cycle. It includes two practice exercises analyzing and correcting accounting errors. The first asks students to correct errors made in January 2020 by Natt Spa by reversing the incorrect entries or without reversing. The second provides errors found by an accountant in Pulsar Cable's April 2020 records, asking students to analyze each error and prepare correcting entries and a correct trial balance. The document provides detailed instructions and ledger balances to guide students in the exercises.

    Original Title

    Gslc Acct6300 Week 3 Session 6 (1)

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    This document provides information for an accounting course discussion on completing the accounting cycle. It includes two practice exercises analyzing and correcting accounting errors. The first asks students to correct errors made in January 2020 by Natt Spa by reversing the incorrect entries or without reversing. The second provides errors found by an accountant in Pulsar Cable's April 2020 records, asking students to analyze each error and prepare correcting entries and a correct trial balance. The document provides detailed instructions and ledger balances to guide students in the exercises.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    130 views2 pages

    GSLC Acct6300 Week 3 Session 6

    Uploaded by

    Whisky XD
    This document provides information for an accounting course discussion on completing the accounting cycle. It includes two practice exercises analyzing and correcting accounting errors. The first asks students to correct errors made in January 2020 by Natt Spa by reversing the incorrect entries or without reversing. The second provides errors found by an accountant in Pulsar Cable's April 2020 records, asking students to analyze each error and prepare correcting entries and a correct trial balance. The document provides detailed instructions and ledger balances to guide students in the exercises.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    GSLC Forum Information

    Course ID : ACCT6300
    Course Name : Introduction to Accounting
    Teaching Week : 3 – Session 6
    Date of Class : Monday, 11 October 2021
    Date of Latest Respond : Monday, 18 October 2021
    Book Reference : Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso (2018).
    Financial Accounting with International Financial Reporting
    Standards. Hoboken: John Wiley & Sons, Inc.

    Chapter 4: Completing the Accounting Cycle

    1. Prepare correcting entries.


    Natt Spa discovered the following errors made in January 2020.
    - A payment of Salaries and Wages Expense of €700 was debited to Equipment
    and credited to Cash, both for €700.
    - A collection of €1,500 from a client on account was debited to Cash €150 and
    credited to Service Revenue €150.
    - The purchase of equipment on account for €670 was debited to Equipment €760
    and credited to Accounts Payable €760.

    Instructions:
    a. Correct the errors by reversing the incorrect entry and preparing the correct entry.
    b. Correct the errors without reversing the incorrect entry.

    2. Analyze errors and prepare correcting entries and trial balance.


    Horace Culpepper, CA, was retained by Pulsar Cable to prepare financial statements
    for April 2020. Horace Culpepper found the following errors.
    a. Cash received from a customer on account was recorded as £950 instead of
    £590.
    b. A payment of £75 for advertising expense was entered as a debit to
    Miscellaneous Expense £75 and a credit to Cash £75.
    c. The first salary payment this month was for £1,900, which included £700 of
    salaries payable on March 31. The payment was recorded as a debit to Salaries
    and Wages Expense £1,900 and a credit to Cash £1,900. (No reversing entries
    were made on April 1.)
    d. The purchase on account of a printer costing £310 was recorded as a debit to
    Supplies and a credit to Accounts Payable for £310.

    Adelia Yulma Budiarto, S.A, MSc. – ACCT6083


    e. A cash payment of repair expense on equipment for £96 was recorded as a
    debit to Equipment £69 and a credit to Cash £69.

    Horace accumulated all the ledger balances per Pulsar’s records and found the
    following.

    Instructions:
    a. Prepare an analysis of each error showing
    (1) the incorrect entry
    (2) the correct entry
    (3) the correcting entry
    Items 4 and 5 occurred on April 30, 2020.

    b. Prepare a correct trial balance.


    Trial balance £22,890

    Adelia Yulma Budiarto, S.A, MSc. – ACCT6083

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