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Accounting
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A.
a failure to record a transaction or to post a transaction.
B.
an error in calculating the account balances.
C.
recording the same erroneous amount for both the debit and thecredit parts of a transaction.
D.
recording the transaction more than once.

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Related questions

Sarasota Corp. has been authorized to issue 20,400 shares of $100 par value, 6%, noncumulative preferred stock and 1,140,000 shares of no-par common stock. The corporation assigned a $4 stated value to the common stock. At December 31, 2017, the ledger contained the following balances pertaining to stockholders’ equity. Preferred Stock $154,000 Paid-in Capital in Excess of Par Value—Preferred Stock 21,400 Common Stock 1,980,000 Paid-in Capital in Excess of Stated Value—Common Stock 1,550,000 Treasury Stock (4,400 common shares) 35,200 Retained Earnings 82,600 Accumulated Other Comprehensive Income 49,400 The preferred stock was issued for $175,400 cash. All common stock issued was for cash. In November 4,400 shares of common stock were purchased for the treasury at a per share cost of $8. No dividends were declared in 2017. Prepare the journal entries for the following. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (1) Issuance of preferred stock for cash. (2) Issuance of common stock for cash. (3) Purchase of common treasury stock for cash. No. Account Titles and Explanation Debit Credit 1. enter an account title to record the first transaction enter a debit amount enter a credit amount enter an account title to record the first transaction enter a debit amount enter a credit amount enter an account title to record the first transaction enter a debit amount enter a credit amount 2. enter an account title to record the second transaction enter a debit amount enter a credit amount enter an account title to record the second transaction enter a debit amount enter a credit amount enter an account title to record the second transaction enter a debit amount enter a credit amount 3. enter an account title to record the third transaction enter a debit amount enter a credit amount enter an account title to record the third transaction enter a debit amount enter a credit amount Prepare the stockholders’ equity section of the balance sheet at December 31, 2017.

The balance column in a ledger account is:

a. An account entered on the balance sheet.

b. A column for showing the balance of the account after each entry is posted.

c. Another name for the withdrawal account.

d. An account used to record the transfers of assets from a business to its owner.

e. A simple form of account that is widely used in accounting to illustrate the debits and credits required in recording a transaction.

CP2-2 Recording Transactions (in a Journal and T-Accounts); Preparing and Interpreting the Balance Sheet [LO 2-2, LO 2-3, LO 2-4, LO 2-5]

[The following information applies to the questions displayed below.]

Athletic Performance Company (APC) was incorporated as a private company. The company’s accounts included the following at July 1:
Accounts Payable $ 6,700
Building 268,000
Cash 10,150
Common Stock 404,000
Equipment 34,750
Land 112,000
Notes Payable (long-term) 22,750
Retained Earnings 0
Supplies 8,550
During the month of July, the company had the following activities:
During the month of July, the company had the following activities:
a. Issued 3,400 shares of common stock for $340,000 cash.
b. Borrowed $34,250 cash from a local bank, payable in two years.
c. Bought a building for $211,000; paid $55,000 in cash and signed a three-year note for the balance.
d. Paid cash for equipment that cost $127,000.
e. Purchased supplies for $18,500 on account.
Required:
1.

Analyze transactions (a)–(e) to determine their effects on the accounting equation. (Enter any decreases to account balances with a minus sign.)

Assets = Liabilities + Stockholders' Equity
Cash Supplies Building Equipment Land Accounts Payable Notes Payable Common Stock Retained Earnings
Beg. 10,150 8,550 268,000 34,750 112,000 6,700 22,750 404,000
a.
b.
c.
d.
e.
End.
2.

Record the transaction effects determined in part 1 using journal entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

1.) Issuance of 3,400 shares of common stock for $340,000 cash. Record the transaction.

2.) The borrowing of $34,250 cash from a local bank, payable June in two years. Record the transaction.

3.) The purchase of a building for $211,000; paid $55,000 in cash and signed a three-year note for the balance. Record the transaction.

4.) The payment of cash for equipment that cost $127,000. Record the transaction.

5.) The purchase of supplies for $18,500 on account. Record the transaction.

Transaction General Journal Debit Credit
a.

CP2-2 Part 3

3.

Summarize the journal entry effects from part 2 using T-accounts. (TIP: Enter the July 1 balances as the month’s beginning balances.)

Cash Supplies
Beg. Bal. Beg. Bal.
End. Bal. End. Bal.
Equipment Building
Beg. Bal. Beg. Bal.
End. Bal. End. Bal.
Land Accounts Payable
Beg. Bal. Beg. Bal.
End. Bal. End. Bal.
Notes Payable (long-term) Common Stock
Beg. Bal. Beg. Bal.
End. Bal. End. Bal.
Retained Earnings
Beg. Bal.
End. Bal.
4. Prepare a trial balance at July 31.
ATHLETIC PERFORMANCE COMPANY
Trial Balance
Debit Credit
Totals $0 $0

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