Black Diamond Pawnshop

Trial Balance
June 30,2014

Cash in Bank 320,000.00

Petty Cash Fund 1,000.00
Loan Pledge Receivable 218,000.00
Furniture and Fixture 85,000.00
Vaults and other equipment 110,000.00
Accounts Payable 20,000.00
B. Pozom, Capital 631,077.00
B. Pozon, Drawing 10,000.00
Interest Income 79,113.00
Service Fee 1,050.00
Interest Past Due 32,015.00
Liquidated Damage 28,075.00
Miscellaneous Income 2,000.00
Gain on Auction Sale 15,000.00
Taxes and Licenses 4,576.00
Postage and Communication 2,325.00
Salaries expense 22,000.00
Rent Expense 29,000.00
Utilities Expense 6,429.00
808,330.00 808,330.00
Trial Balance
Debit Credit
Cash in bank 750,000.00
Petty Cash fund 1,000.00
Accounts Receivable 10,000.00
Prepaid Rent 15,000.00
Prepaid Insurance 8,000.00
Furniture and Fixtures 50,000.00
Bowling Equipment 965,000.00
Accounts Payable 56,734.00
K. Leon, Capital 1,632,641.00
K, Leon Withdrawal 8,000.00
Bowling Income 192,850.00
Miscellaneous Income 11,325.00
Salaries Expense 12,000.00
Supplies Expense 36,000.00
Taxes and Licenses 7,500.00
Utilities Expense 31,050.00
1,893,550.00 1,893,550.00
Preparation of a corrected trial balance

Account Titles Debit Credit

Cash in Bank 150,000.00
Account Receivable 25,000.00
Office Supplies Inventory 10,000.00
Library Books 30,000.00
Accounts Payable 5,000.00
Notes Payable 8,000.00
V. Jumilla, Capital 173,000.00
V, Jumilla Drawing 2,000.00
Legal fees Income 40,000.00
Taxes and Licenses 1,000.00
Rental Expense 8,000.00
226,000.00 226,000.00
ERRORS AND OMISSIONS AS DISCLOSED
A. In a journal entry, the debit item was correctly posted was made for credit item
B. The transactions which relates to the recording of cash received for services rendered to a customer was inadvertently omi
C. The journal entry recording payment of account to a creditor was not posted to the ledger in its entirety
D. The amount of owners' drawing account was placed on the credit column of the trial balance by a correct amount
E. In a journal entry recording collection from a customer's account, the debit item with its amount was correctly posted to its
posted to the credit side of Accounts Payable Ledger by a correct amount
 In-balance Out of balance
/
stomer was inadvertently omitted in the journal entry /
/
by a correct amount /
unt was correctly posted to its ledger but the credit item was erroneousy /
Out of balance
1. What is a controlling account
Answer: It is a general ledger account that summarizes and combines all of the subsidiary accounts for a specific type
2. What is a Subsidiary Ledger
Answer:It is a group of similar accounts whose combined balances equal the balance in a specific general ledger account.
3. Explain the relationship between controling accounts and subsidiary ledgers
Answer: A subsidiary account is used to track information at a very detailed level for certain types of transactions, such as acco
nts for a specific type

c general ledger account.

es of transactions, such as accounts receivable and accounts payable. A control account is a summary-level account in the general ledger t
ccount in the general ledger that contains aggregated totals
1. The products of subsidiary ledgers are schedule of receivable and payable
2. The schedules of Account Payable will show in details whoe are those indebted from the business
3. Subsidiary Ledgeres are filled alphabetically same with the General Ledger
4. Schedules of Receivables and Payables are arranged alphabetically
m the business
1
2
3
4
5
6
7
8
1
2
3
4
5
6
7
8
1. Posting is in itself in the classfying function of accounting
2. The arrangement of account in the General ledger is patterned from the chart of accounts
3. The acount that remains open after footing the general ledger constitue the trial balance
4. The purpose of a trial balance is to check the arithmetical or mathemaatical accuracy in posting and footing of th
5. A trial balance will not disclose an error. If the error is a journal entry that has not been posted in its entirety
6. Posting an entry twice in the general ledger will cause the trial balance to be "out of balance"
7. Double posting of journal entries will cause the trial balance to be "out of balance"
 cy in posting and footing of the accounts
been posted in its entirety