《financial Accouning, 9e财务会计 Warren》ch02.pptVIP

Flow of Business Transactions 1. Failure to record a transaction or to post a transaction. 2. Recording the same erroneous amount for both the debit and the credit parts of a transaction. 3. Recording the same transaction more than once. 4. Posting a part of a transaction correctly as a debit or credit but to the wrong account. Dec. 23 NetSolutions paid $1,450 for supplies. 22 23 24 25 23 Supplies 14 1 450 00 Cash 11 1 450 00 Purchased supplies. Dec. 27 NetSolutions paid the receptionist and part-time assistant $1,200 for two weeks’ wages. 27 28 29 30 27 Wages Expense 51 1 200 00 Cash 11 1 200 00 Paid two weeks’ wages. Dec. 31 NetSolutions paid its $310 telephone bill for the month. 31 32 33 34 31 Utilities Expense 54 310 00 Cash 11 310 00 Paid telephone bill. Dec. 31 NetSolutions paid its $225 electric bill for the month. Post. Ref. JOURNAL Date Description Debit Credit Page 4 1 2 3 4 Dec. 31 2005 Utilities Expense 54 225 00 Cash 11 225 00 Paid utility bill. Dec. 31 NetSolutions received $2,870 from fees earned for the second half of December. 5 6 7 8 31 Cash 11 2 870 00 Fees Earned 41 2 870 00 Received fees from customers. Dec. 31 NetSolutions earned $1,120 on account for the second half of December. 9 10 11 12 31 Accounts Receivable 12 1 120 00 Fees Earned 41 1 120 00 Recorded fees earned on account. Dec. 31 Chris Clark withdrew $2,000 for personal use. 14 15 16 17 31 Chris Clark, Drawing 32 2 000 00 Cash 11 2 000 00 Chris Clark withdrew cash for personal use. Trial Balance NetSolutions Trial Balance December 31, 2005 Cash 2 065 00 Accounts Receivable 2 220 00 Supplies 2 000 00 Prepaid Insurance 2 400 00 Land 20 000 00 Office Equipment 1 800 00 Accounts Payable 900 00 Unearned Rent 360 00 Chris Clark, Capital 25 000 00 Chris Clark, Drawing 4 000 00 Fees Earned 16 340 00 Wages Expense 4 275 00 Rent Expense 1 600 00 Utilities Expense 985 00 Supplies Expense 800 00 Miscellaneous Expense 455 00