Question

PART ONE: The accounts in the ledger of Hickory FurnitureCompany as of December 31, 2016, are listed in alphabetical orderas follows. All accounts have normal balances. The balance of thecash account has been intentionally omitted. I AMMISSING CASH (DEBIT) and Debit TOTAL---only

Accounts Payable $ 42,880

Notes Payable $ 41,000

Accounts Receivable 115,430

Prepaid Insurance 20,400

Cash ?

Rent Expense 45,000

Common Stock 15,000

Retained Earnings 51,000

Dividends 22,500

Supplies 4,940

Fees Earned 746,050

Supplies Expense 6,070

Insurance Expense 3,100

Unearned Rent 13,200

Land 41,000

Utilities Expense 26,840

Miscellaneous Expense 9,900

Wages Expense 572,100

Prepare an unadjusted trial balance and insert the missingfigure for cash.

Hickory FurnitureCompany

UNADJUSTED TRIAL BALANCE

Score: 68/75

December 31,2016

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash
2	Accounts Receivable	✔
3	Supplies
4	Prepaid insurance	✔
5	Land	✔
6	Accounts Payable		✔
7	Unearned Rent		✔
8	Notes Payable		✔
9	Common Stock		✔
10	Retained Earnings		✔
11	Dividends	✔
12	Fees Earned		✔
13	Wages Expense	✔
14	Rent Expense	✔
15	Utilities Expense	✔
16	Supplies Expense	✔
17	Insurance Expense	✔
18	Miscellaneous Expense	✔
19	Totals		✔

PART TWO:

On July 24, it was discovered that the following errors tookplace in journalizing and posting transactions:

a.	Cash of $8,100 received on accountwas recorded as a debit to Fees Earned and a credit to Cash.
b.	A $1,560 purchase of supplies forcash was recorded as a debit to Supplies Expense and a credit toAccounts Payable.

Journalize the entries on July 24 to correct the errors. Use twotransactions to correct the error described in b. (That is, recordan entry to reverse the incorrect entry and a second entry torecord the correct entry.) Refer to the Chart of Accounts for exactwording of account titles.

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1				XXXX
2
3
4
5		XXXX		XXX
6		XXXX
7		XXXX

CHARTOF ACCOUNTS

General Ledger

	ASSETS
11	Cash
12	Accounts Receivable
13	Supplies
14	Prepaid Rent
15	Land
16	Office Equipment
17	Automobiles

	LIABILITIES
21	Accounts Payable
22	Salaries Payable
23	Notes Payable

	EQUITY
31	Common Stock
32	Retained Earnings
33	Dividends

	REVENUE
41	Fees Earned

	EXPENSES
51	Advertising Expense
52	Automobile Expense
53	Insurance Expense
54	Rent Expense
55	Salaries Expense
56	Supplies Expense
57	Utilities Expense
58	Miscellaneous Expense