Following are the general ledger account balances of Balcones Company, Inc. (BCI
ID: 2349617 • Letter: F
Question
Following are the general ledger account balances of Balcones Company, Inc. (BCI), as of September 30, 2009:Cash $50,000
Accounts Receivable 300,000
Inventory 250,000
Equipment 450,000
Accumulated Depreciation-Equipment 110,000
Accounts Payable 350,000
Income Taxes Payable 50,000
Common Stock 95,000
Retained Earning 100,000
Sales Revenue 600,000
Operating Expenses 255,000
a.) Prepare a trial balance for BCI as of September 30, 2009.
b.) Even if a trial balance is in balance, one or more general ledger accounts of a business may contain errors. Provide three examples of accounting errors that would not cause a business
Explanation / Answer
Trial balance for BCI as of September 30, 2009.
Account Debit Credit
Cash 50,000
Accounts Receivable 300,000
Inventory 250,000
Equipment 450,000
Accumulated Depreciation-Equipment 110,000
Accounts Payable 350,000
Income Taxes Payable 50,000
Common Stock 95,000
Operating Expenses 255,000
Retained Earning 100,000
Sales Revenue 600,000
Total: 1305000 1305000
Accounting errors that would not cause a business’s trial balance to be out-of-balance