Dana rand owns a catering company that prepares banquets and parties for both individual and business functions throughout the year. rand’s business is seasonal, with a heavy schedule during the summer months and the year-end holidays and a light schedule at other times. during peak periods, there are extra costs; however, even during nonpeak periods rand must work more to cover her expenses.

food and beverages $ 15
labor (.5 hr. @ $10 per hour) 5
overhead (.5 hr. @ $14 per hour) 7
total cost per person $ 27

Tiana daniels enterprise’s trial balance as at december 31, 2016 did not balance. on february 15, 2017 the following errors were detected: errorsi. water rates had been undercast by $2, 000.  ii. a cheque paid to yvonne walch of $2, 680 had been posted to the credit side of her account.  iii. discount received total of $1, 260 had been posted to the debit side of the discount allowed account as $1, 620.  iv. rent paid in the amount of $24, 000 had been posted to the credit of the rent received account.  v. wayne returned goods valuing $1, 680 to daniels enterprise but had been completely omitted from the books.    required: 1. prepare the journal entries to correct the errors.  (narrations required)                    14.5 marks  2.    prepare the suspense account showing clearly the original trial balance error.          8 marks