{"id":1445,"date":"2015-07-05T18:27:57","date_gmt":"2015-07-05T18:27:57","guid":{"rendered":"https:\/\/courses.candelalearning.com\/finaccountingxmaster\/?post_type=chapter&p=1445"},"modified":"2015-07-12T15:28:14","modified_gmt":"2015-07-12T15:28:14","slug":"exercises-unit-3-need-content","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/clinton-finaccounting\/chapter\/exercises-unit-3-need-content\/","title":{"raw":"Exercises: Unit 3","rendered":"Exercises: Unit 3"},"content":{"raw":"

SHORT ANSWER QUESTIONS, EXERCISES AND PROBLEMS<\/h3>\r\n
Questions<\/strong><\/b>\r\n\r\n\u27a2\u00a0 Describe the steps in recording and posting the effects of a business transaction.\r\n\r\n\u27a2\u00a0 Give some examples of source documents.<\/section>
\u27a2\u00a0 Define an account. What are the two\u00a0 forms of account posting illustrated in the chapter?\r\n\r\n\u27a2\u00a0 What is meant by the term double-entry procedure, or duality?\r\n\r\n\u27a2\u00a0 Describe how you would determine the balance of a T-account.\r\n\r\n\u27a2\u00a0 Define debit and credit.\r\n\r\n\u27a2\u00a0 Do you think this double entry accounting system makes sense? Can you conceive of other possible methods for recording changes in accounts?\r\n\r\n\u27a2\u00a0 Which of the steps in the accounting cycle are performed throughout the accounting period?\r\n\r\n\u27a2\u00a0\u00a0What is the purpose of the Dividends account and how is it increased?\r\n\r\n\u27a2\u00a0\u00a0Describe the nature and purposes of the general journal. What does journalizing mean? Give an example of a compound entry in the general journal.\r\n\r\n\u27a2\u00a0 Describe a ledger and a chart of accounts. How do these two compare with a book and its table of contents?\r\n\r\n\u27a2\u00a0 Describe the act of posting.\r\n\r\n\u27a2\u00a0\u00a0What types of accounts appear in the unadjusted trial balance? What are the purposes of this trial balance?\r\n\r\n\u27a2\u00a0 You have found that the total of the Debits column of the trial balance of Burns Company is $ 200,000, while the total of the Credits column is $ 180,000. What are some possible causes of this difference? If the difference between the columns is divisible by 9, what types of errors are possible?\r\n\r\n\u27a2\u00a0 Store equipment was purchased for $ 2,000. Instead of debiting the Store Equipment account, the debit was made to Delivery Equipment. Of what help will the trial balance be in locating this error? Why?\r\n\r\n\u27a2\u00a0 A student remembered that the side toward the window in the classroom was the debit side of an account. The student took an examination in a room where the windows were on the other side of the room and became confused and consistently reversed debits and credits. Would the student's trial balance have equal debit and credit totals? If there were no existing balances in any of the accounts to begin with, would the error prevent the student from preparing correct financial statements? Why?\r\n

Exercises<\/strong><\/b><\/h4>\r\nExercise A\u00a0<\/strong><\/b> <\/b>Prepare the journal entry required for each of the following transactions:\r\n
    \r\n\t
  1. Cash was received for services performed for customers,\u00a0$1,200.<\/li>\r\n\t
  2. Services were performed for customers on account,\u00a0$4,200.<\/li>\r\n<\/ol>\r\nExercise\u00a0B <\/strong><\/b>Prepare the journal entry required for each of the following transactions:\r\n
      \r\n\t
    1. Common stock was issued for\u00a0$ 100,000.<\/li>\r\n\t
    2. Purchased machinery for cash,\u00a0$ 30,000.<\/li>\r\n<\/ol>\r\nExercise C <\/strong><\/b>Prepare the journal entry required for each of the following transactions:\r\n
        \r\n\t
      1. Capital stock was issued for $ 200,000 cash.<\/li>\r\n\t
      2. A $ 30,000 loan was arranged with a bank. The bank increased the company's checking account by $ 30,000 after management of the company signed a written promise to return the $ 30,000 in 30 days.<\/li>\r\n\t
      3. Cash was received for services performed for customers, $ 700.<\/li>\r\n\t
      4. Services were performed for customers on account, $ 1,200.<\/li>\r\n<\/ol>\r\nExercise\u00a0D <\/strong><\/b>For each of the following unrelated transactions, give the journal entry to record the transaction. Then show how the journal entry would be posted to T-accounts. You need not include explanations or account numbers.\r\n
          \r\n\t
        1. Capital stock was issued for $ 100,000 cash.<\/li>\r\n\t
        2. Salaries for a period were paid to employees, $ 24,000.<\/li>\r\n\t
        3. Services were performed for customers on account, $ 40,000.<\/li>\r\n<\/ol>\r\nExercise\u00a0E\u00a0<\/strong><\/b>\u00a0<\/strong><\/b>Prepare journal entries to record each of the following transactions for Sanchez Company. Use the letter of the transaction in place of the date. Include an explanation for each entry.\r\n
            \r\n\t
          1. Capital stock was issued for cash, $ 300,000.<\/li>\r\n\t
          2. Purchased trucks by signing a note bearing no interest, $ 210,000.<\/li>\r\n\t
          3. Earned service revenue on account, $ 4,800.<\/li>\r\n\t
          4. Collected the account receivable resulting from transaction (c), $ 4,800.<\/li>\r\n\t
          5. Paid the note payable for the trucks purchased, $ 210,000.<\/li>\r\n\t
          6. Paid utilities for the month in the amount of $ 1,800.<\/li>\r\n\t
          7. Paid salaries for the month in the amount of $ 7,500.<\/li>\r\n\t
          8. Incurred supplies expenses on account in the amount of $ 1,920.<\/li>\r\n\t
          9. Purchased another truck for cash, $ 48,000.<\/li>\r\n\t
          10. Performed delivery services on account, $ 24,000.<\/li>\r\n<\/ol>\r\nExercise\u00a0F <\/strong><\/b>Using the data in the previous problem, post the entries to T-accounts. Write the letter of the transaction in the account before the dollar amount. Determine a balance for each account.\r\n\r\nExercise\u00a0G <\/strong><\/b>Using your answer for the previous exercise, prepare a trial balance. Assume the date of the trial balance is\u00a0March 31.\r\n\r\nProblems<\/strong><\/b>\r\n\r\nProblem A <\/strong><\/b>The transactions of Lightning Package Delivery Company for March\u00a0follow:\r\n\r\nMar. 1 The company was organized and issued capital stock for $ 300,000 cash.\r\n\r\n2 Paid $ 6,000 as the rent for March on a completely furnished building.\r\n\r\n5 Paid cash for delivery trucks, $ 180,000.\r\n\r\n6 Paid $ 4,000 as the rent for March on two forklift trucks.\r\n\r\n9 Paid $ 2,200 for supplies received and used in March.\r\n\r\n12 Performed delivery services for customers who promised to pay $ 27,000 at a later date.\r\n\r\n20 Collected cash of $ 4,500 from customers on account (see March 12 entry).\r\n\r\n21 Received a bill for $ 1,200 for advertising in the local newspaper in March.\r\n\r\n27 Paid cash for gas and oil consumed in March, $ 450.\r\n\r\n31 Paid $ 2,400 salaries to employees for March.\r\n\r\n31 Received an order for services at $ 12,000. The services will be performed in April.\r\n\r\n31 Paid cash dividend, $ 1,000.\r\n\r\nPrepare the journal entries required to record these transactions in the general journal of the company.\r\n\r\nProblem B <\/strong><\/b>Economy Laundry Company had the following transactions in August:\r\n\r\nAug. 1 Issued capital stock for cash, $ 150,000.\r\n\r\n3 Borrowed $ 40,000 from the bank on a note.\r\n\r\n4 Purchased cleaning equipment for $ 25,000 cash.\r\n\r\n6 Performed services for customers who promised to pay later, $ 16,000.\r\n\r\n7 Paid this month's rent on a building, $ 2,800.\r\n\r\n10 Collections were made for the services performed on August 6, $ 3,200.\r\n\r\n14 Supplies were purchased on account for use this month, $ 3,000.\r\n\r\n17 A bill for $ 400 was received for utilities for this month.\r\n\r\n25 Laundry services were performed for customers who paid immediately, $ 22,000.\r\n\r\n31 Paid employee salaries, $ 6,000.\r\n\r\n31 Paid cash dividend, $ 2,000.\r\n\r\nRequired:\r\n
              \r\n\t
            1. Prepare journal entries for these transactions.<\/li>\r\n\t
            2. Post the journal entries to T-accounts. Enter the account number in the Posting Reference column of the journal as you post each amount. Use the following account numbers:<\/li>\r\n<\/ol>\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
              Acct.<\/strong><\/b><\/td>\r\n<\/td>\r\n<\/tr>\r\n
              No.<\/strong><\/b><\/td>\r\nAccount Title<\/strong><\/b><\/td>\r\n<\/tr>\r\n
              100<\/td>\r\nCash<\/td>\r\n<\/tr>\r\n
              103<\/td>\r\nAccounts receivable<\/td>\r\n<\/tr>\r\n
              170<\/td>\r\nEquipment<\/td>\r\n<\/tr>\r\n
              200<\/td>\r\nAccounts payable<\/td>\r\n<\/tr>\r\n
              201<\/td>\r\nNotes payable<\/td>\r\n<\/tr>\r\n
              300<\/td>\r\nCapital stock<\/td>\r\n<\/tr>\r\n
              320<\/td>\r\nDividends<\/td>\r\n<\/tr>\r\n
              400<\/td>\r\nService revenue<\/td>\r\n<\/tr>\r\n
              507<\/td>\r\nSalaries expense<\/td>\r\n<\/tr>\r\n
              511<\/td>\r\nUtilities expense<\/td>\r\n<\/tr>\r\n
              515<\/td>\r\nRent expense<\/td>\r\n<\/tr>\r\n
              518<\/td>\r\nSupplies expense<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n3.\u00a0 Prepare a trial balance as of\u00a0August 31.\r\n\r\nProblem C <\/strong><\/b>Clean-Sweep Janitorial, Inc., a company providing janitorial services, was organized\u00a0July 1. The following account numbers and titles constitute the chart of accounts for the company:\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
              Acct.<\/strong><\/b><\/td>\r\n<\/td>\r\n<\/tr>\r\n
              No.<\/strong><\/b><\/td>\r\nAccount Title<\/strong><\/b><\/td>\r\n<\/tr>\r\n
              100<\/td>\r\nCash<\/td>\r\n<\/tr>\r\n
              103<\/td>\r\nAccounts receivable<\/td>\r\n<\/tr>\r\n
              150<\/td>\r\nTrucks<\/td>\r\n<\/tr>\r\n
              160<\/td>\r\nOffice equipment<\/td>\r\n<\/tr>\r\n
              170<\/td>\r\nEquipment<\/td>\r\n<\/tr>\r\n
              200<\/td>\r\nAccounts payable<\/td>\r\n<\/tr>\r\n
              201<\/td>\r\nNotes payable<\/td>\r\n<\/tr>\r\n
              300<\/td>\r\nCapital stock<\/td>\r\n<\/tr>\r\n
              310<\/td>\r\nRetained earnings<\/td>\r\n<\/tr>\r\n
              320<\/td>\r\nDividends<\/td>\r\n<\/tr>\r\n
              400<\/td>\r\nService revenue<\/td>\r\n<\/tr>\r\n
              506<\/td>\r\nGas and oil expense<\/td>\r\n<\/tr>\r\n
              507<\/td>\r\nSalaries expense<\/td>\r\n<\/tr>\r\n
              511<\/td>\r\nUtilities expense<\/td>\r\n<\/tr>\r\n
              512<\/td>\r\nInsurance expense<\/td>\r\n<\/tr>\r\n
              515<\/td>\r\nRent expense<\/td>\r\n<\/tr>\r\n
              518<\/td>\r\nSupplies expense<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nJuly 1 The company issued $ 600,000 of capital stock for cash.\r\n\r\n5 Office space was rented for July, and $ 5,000 was paid for the rental.\r\n\r\n8 Desks and chairs were purchased for the office on account, $ 28,800.\r\n\r\n10 Equipment was purchased for $ 50,000; a note was given, to be paid in 30 days.\r\n\r\n15 Purchased trucks for $ 150,000, paying $ 120,000 cash and giving a 60-day note to the dealer for $ 30,000.\r\n\r\nJuly 18 Paid for supplies received and already used, $ 2,880.\r\n\r\n23 Received $ 17,280 cash as service revenue.\r\n\r\n27 Insurance expense for July was paid, $ 4,500.\r\n\r\n30 Paid for gasoline and oil used by the truck in July, $ 576.\r\n\r\n31 Billed customers for janitorial services rendered, $ 40,320.\r\n\r\n31 Paid salaries for July, $ 51,840.\r\n\r\n31 Paid utilities bills for July, $ 5,280.\r\n\r\n31 Paid cash dividends, $ 9,600.\r\n
                \r\n\t
              1. Journalize the transactions given for July\u00a0in the general journal.<\/li>\r\n\t
              2. Post the journal entries to ledger accounts.<\/li>\r\n\t
              3. Prepare a trial balance as of\u00a0 July 31.<\/li>\r\n<\/ol>\r\nProblem D <\/strong><\/b>Trim Lawn, Inc., is a lawn care company. Thus, the company earns its revenue from sending its trucks to customers' residences and certain commercial establishments to care for lawns and shrubbery. Trim Lawn's trial balance at the end of the first 11 months of the year follows:\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
                \u00a0<\/strong><\/b><\/td>\r\nTRIM LAWN, INC.<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                \u00a0<\/strong><\/b><\/td>\r\nTrial Balance<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                \u00a0<\/strong><\/b><\/td>\r\nNovember 30<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                Acct.<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                No.<\/strong><\/b><\/td>\r\nAccount Title<\/strong><\/b><\/td>\r\nDebits<\/strong><\/b><\/td>\r\nCredits<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                100<\/strong><\/b><\/td>\r\nCash<\/strong><\/b><\/td>\r\n$ 63,740<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                103<\/strong><\/b><\/td>\r\nAccounts Receivable<\/strong><\/b><\/td>\r\n88,600<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                150<\/strong><\/b><\/td>\r\nTrucks<\/strong><\/b><\/td>\r\n102,900<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                160<\/strong><\/b><\/td>\r\nOffice Furniture<\/strong><\/b><\/td>\r\n8,400<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                200<\/strong><\/b><\/td>\r\nAccounts Payable<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n$ 33,600<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                300<\/strong><\/b><\/td>\r\nCapital Stock<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n30,000<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                310<\/strong><\/b><\/td>\r\nRetained Earnings, 2010 January 1<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n30,540<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                400<\/strong><\/b><\/td>\r\nService Revenue<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n371,010<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                505<\/strong><\/b><\/td>\r\nAdvertising Expense<\/strong><\/b><\/td>\r\n18,300<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                506<\/strong><\/b><\/td>\r\nGas an d Oil Expense<\/strong><\/b><\/td>\r\n21,900<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                507<\/strong><\/b><\/td>\r\nSalaries Expense<\/strong><\/b><\/td>\r\n65,850<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                511<\/strong><\/b><\/td>\r\nUtilities Expense<\/strong><\/b><\/td>\r\n2,310<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                515<\/strong><\/b><\/td>\r\nRent Expense<\/strong><\/b><\/td>\r\n15,000<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                518<\/strong><\/b><\/td>\r\nSupplies Expense<\/strong><\/b><\/td>\r\n75,600<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                531<\/strong><\/b><\/td>\r\nEntertainment Expense<\/strong><\/b><\/td>\r\n2,550<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                \u00a0<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n$465,150<\/strong><\/b><\/td>\r\n$465,150<\/strong><\/b><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nDec. 2 Paid rent for December, $ 3,000.\r\n\r\n5 Paid the accounts payable of $ 33,600.\r\n\r\n8 Paid advertising for December, $ 1,500.\r\n\r\n10 Purchased a new office desk on account, $ 1,050.\r\n\r\n13 Purchased $ 240 of supplies on account for use in December.\r\n\r\n15 Collected cash from customers on account, $ 75,000.\r\n\r\n20 Paid for customer entertainment, $ 450.\r\n\r\n24 Collected an additional $ 6,000 from customers on account.\r\n\r\n26 Paid for gasoline used in the trucks in December, $ 270.\r\n\r\n28 Billed customers for services rendered, $ 79,500.\r\n\r\n30 Paid for more December supplies, $ 12,000.\r\n\r\n31 Paid December salaries, $ 15,300.\r\n\r\n31 Paid a $ 4,000 cash dividend. (The Dividends account is No. 320.)\r\n
                  \r\n\t
                1. Prepare entries in the general journal for the preceding transactions for December.<\/li>\r\n\t
                2. Post the journal entries to three-column general ledger accounts.<\/li>\r\n\t
                3. Prepare a trial balance as of\u00a0 December 31.<\/li>\r\n<\/ol>\r\nProblem E <\/strong><\/b>Marc Miller prepared the following trial balance from the ledger of the Quick-Fix TV Repair Company. The trial balance did not balance.\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
                  \u00a0<\/strong><\/b><\/td>\r\nQUICK-FIX REPAIR COMPANY<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                  \u00a0<\/strong><\/b><\/td>\r\nTrial Balance<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                  \u00a0<\/strong><\/b><\/td>\r\nDecember 31<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                  Acct.<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                  No.<\/strong><\/b><\/td>\r\nAccount Title<\/strong><\/b><\/td>\r\nDebits<\/strong><\/b><\/td>\r\nCredits<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                  100<\/strong><\/b><\/td>\r\nCash<\/strong><\/b><\/td>\r\n$ 69,200<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                  103<\/strong><\/b><\/td>\r\nAccounts Receivable<\/strong><\/b><\/td>\r\n60,800<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                  160<\/strong><\/b><\/td>\r\nOffice Furniture<\/strong><\/b><\/td>\r\n120,000<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                  172<\/strong><\/b><\/td>\r\nOffice Equipment<\/strong><\/b><\/td>\r\n48,000<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                  200<\/strong><\/b><\/td>\r\nAccounts Payable<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n$ 32,400<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                  300<\/strong><\/b><\/td>\r\nCapital Stock<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n180,000<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                  310<\/strong><\/b><\/td>\r\nRetained Earnings<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n80,000<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                  320<\/strong><\/b><\/td>\r\nDividends<\/strong><\/b><\/td>\r\n28,800<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                  400<\/strong><\/b><\/td>\r\nService Revenue<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n360,000<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                  507<\/strong><\/b><\/td>\r\nSalaries Expense<\/strong><\/b><\/td>\r\n280,000<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                  515<\/strong><\/b><\/td>\r\nRent Expense<\/strong><\/b><\/td>\r\n40,000<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                  568<\/strong><\/b><\/td>\r\nMiscellaneous Expense<\/strong><\/b><\/td>\r\n7,200<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n<\/tr>\r\n
                  \u00a0<\/strong><\/b><\/td>\r\n\u00a0<\/strong><\/b><\/td>\r\n$654,000<\/strong><\/b><\/td>\r\n$652,400<\/strong><\/b><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nThe difference in totals in the trial balance caused Miller to carefully examine the company's accounting records. In searching back through the accounting records, Miller found that the following errors had been made:\r\n