A6 Trial balance errorsFor each of the following errors, considered individually, indicate whether the error would cause the trial balance totals tobe unequal. If the error would cause the trial balance totals to be unequal, indicate whether the debit or credit total ishigher and by how much. If the debit and credit totals would be equal, enter zero ("0") in the amount box.a. The payment of cash for the purchase of office equipment of $15,000 was debited to Land for $15,000 and credited toCash for $15,000.by sb. The payment of $3,000 on account was debited to Accounts Payable for $300 and credited to Cash for $3,000.by sc. The receipt of cash on account of $1,200 was recorded as a debit to Cash for $2,100 and a credit to Accounts Receivablefor $1,200.by s

Journal entries are those which are recorded for every transaction which takes place during the…

a. The payment of cash for the purchase of office equipment of $15,000 was debited to Land for $15,000 and credited to Cash for $15,000. by s b. The payment of $3,000 on account was debited to Accounts Payable for $300 and credited to Cash for $3,000. by s c. The receipt of cash on account of $1,200 was recorded as a debit to Cash for $2,100 and a credit to Accounts Receivables for $1,200. by s

a. The payment of cash for the purchase of office equipment of $15,000 was debited to Land for $15,000 and credited to Cash for $15,000. by s b. The payment of $3,000 on account was debited to Accounts Payable for $300 and credited to Cash for $3,000. by s c. The receipt of cash on account of $1,200 was recorded as a debit to Cash for $2,100 and a credit to Accounts Receivables for $1,200. by s

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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If a $335.00 debit item in the general journal is posted as a credit: By how much will the trial balance be out of balance? Explain how you might detect such an error.
An error was made in posting of cash sales for $2 000. The both accounts were understated by the amount. What type of error is this? Error of Principle Error of Original Entry Error of Commission Reversal of Entries
A journal entry for a $75 payment for rent expense was posted as a debit to Salaries Expense and a credit to Cash. Which of the following statements correctly states the effect of the error on the trial balance? O A. The sum of the debits will exceed the sum of the credits by $75. O B. The sum of the debits will exceed the sum of the credits by $150. O C. The sum of the credits will equal the sum of the debits. O D. The sum of the credits will exceed the sum of the debits by $150.
ME11Which of the following errors, each considered individually, would cause the trial balance totals to be unequal?a) A payment of $488 to a creditor was posted as a debit of $848 to Accounts Payable and a debit of $488 to Accounts Receivable.b) Cash received from customers on account was posted as a debit of $450 to Cash and a credit of $450 to Accounts Payable.c) A payment of $79 for supplies was posted as a debit of $907 to Supplies and a credit of $907 to Cash.d) A transaction was not posted.
4. Complete the following chart to show the effect of errors on a trial balance Trial balance will not balance Trial balance will Debits Credits balance but will greater than greater than not be correct Error Situation credits by ($) debits by ($) (r) A. A transaction for $500 was journalized and posted as $50. B. A debit of $200 to Bank was posted to a customer's account. c. An account with a credit balance of $300 in the ledger was placed on the debit side of the trial balance. D. A Supplies balance of $500 was not placed on the trial balance. E. A credit of $200 was posted twice. F. An entire journal entry for $350 was not posted. G. The Revenue account balance of $42 000 was listed on the trial Page 4
A £500 cash sale was entered as a debit in the sales account and a credit in the bank account. What type of error is this? Select one: A. Compensating B. Ommission C. Reversal of entries O D. Original entry E. Commission O F. Principle
A journal entry for a $700 payment for Prepaid Rent was erroneously recorded as a debit to Prepaid Rent for $100. and a credit to Cash for $700. Which of the following statements correctly states the effect of the error on the trial balance? A. The sum of the debits will exceed the sum of the credits by $600. B. The sum of the credits will exceed the sum of the debits by $600. C. The sum of the debits will exceed the sum of the credits by $100. D. The sum of the credits will exceed the sum of the debits by $100. 0 0 0 0
A credit sales of RM5,000 to Rima was credited to the Sales Account, but wrongly debited in Rama account (a debtor). What is the type of error made? Error of original entry Error of commission Compensating error Error of omission
Which of the following record keeping errors would result in the wrong total for debits and credits on the unadjusted trial balance? O A. A cash sale of $1500 was recorded as a debit to cash and a credit to accounts payable. O B. A payment of $2,000 in dividends was recorded as debit to salary expense instead of a debit to dividends. C. A bill for telephone expense was recorded as a debit to utilities expense and credit to cash. O D. A payment to a supplier for the amount owing on account was recorded as a debit to accounts receivable and a credit to cash. Reset Selection
The debit and credit totals are not equal as a result of the following errors:a. The cash entered on the trial balance was understated by $6,000.b. A cash receipt of $5,600 was posted as a debit to Cash of $6,500.c. A debit of $11,000 to Accounts Receivable was not posted.d. A return of $150 of defective supplies was erroneously posted as a $1,500 credit to Supplies.e. An insurance policy acquired at a cost of $1,200 was posted as a credit to Prepaid Insurance.f. The balance of Notes Payable was understated by $20,000.g. A credit of $4,800 in Accounts Payable was overlooked when determining the balance of the account.h. A debit of $7,000 for a withdrawal by the owner was posted as a credit to Terry Colby, Capital.i. The balance of $58,100 in Rent Expense was entered as $51,800 in the trial balance.j. Gas, Electricity, and Water Expense, with a balance of $24,150, was omitted from the trial balance.Instructions1. Prepare a corrected unadjusted trial balance as of August 31, 2014.2. Does…
Journalize the entries to correct the following errors: a. A purchase of supplies for $201 on account was recorded and posted as a debit to Supplies for $595 and as a credit to Accounts Receivable for $595. (Record the entry to reverse the error first.) If an amount box does not require an entry, leave it blank. b. A receipt of $5,900 from Fees Earned was recorded and posted as a debit to Fees Earned for $5,900 and a credit to Cash for $5,900. If an amount box does not require an entry, leave it blank.
The Colby Group has the following unadjusted trial balance as of August 31, 2019: The Colby Group Unadjusted Trial Balance August 31, 2019 Credit Balances Debit Balances Cash 17,300 37,000 7,400 Accounts Receivable Supplies Prepaid Insurance Equipment.. Notes Payable.. Accounts Payable Terry Colby, Capital.. Terry Colby, Drawing 1,900 196,000 97,600 26,000 129,150 56,000 Fees Earned.. 454,450 Wages Expense Rent Expense Advertising Expense.. Miscellaneous Expense 270,000 51,800 25,200 5,100 667,700 707,200