Effect of errors on trial balance
The following errors occurred in posting from a two-column journal:
1. A credit of $6,000 to Accounts Payable was not posted. 2. An entry debiting Accounts Receivable and crediting Fees Earned for $5,300 was not posted. 3. A debit of $2,700 to Accounts Payable was posted as a credit. 4. A debit of $480 to Supplies was posted twice. 5. A debit of $3,600 to Cash was posted to Miscellaneous Expense. 6. A credit of $780 to Cash was posted as $870. 7. A debit of $12,620 to Wages Expense was posted as $12,260.
Considering each case individually (i.e., assuming that no other errors had occurred), indicate: (a) by yes or no whether the trial balance would be out of balance; (b) if answer to (a) is yes, the amount by which the trial balance totals would differ; and (c) whether the Debit or Credit column of the trial balance would have the larger total. Answers should be presented in the following form, with error (1) given as an example: (a) (b) ( c) Error Out of Balance Difference Larger Total 1. yes $6,000 Debit
Effect of errors on trial balance
The following errors occurred in posting from a two-column journal:
1. A credit of $6,000 to Accounts Payable was not posted. 2. An entry debiting Accounts Receivable and crediting Fees Earned for $5,300 was not posted. 3. A debit of $2,700 to Accounts Payable was posted as a credit. 4. A debit of $480 to Supplies was posted twice. 5. A debit of $3,600 to Cash was posted to Miscellaneous Expense. 6. A credit of $780 to Cash was posted as $870. 7. A debit of $12,620 to Wages Expense was posted as $12,260.
Considering each case individually (i.e., assuming that no other errors had occurred), indicate: (a) by yes or no whether the trial balance would be out of balance; (b) if answer to (a) is yes, the amount by which the trial balance totals would differ; and (c) whether the Debit or Credit column of the trial balance would have the larger total. Answers should be presented in the following form, with error (1) given as an example: (a) (b) ( c) Error Out of Balance Difference Larger Total 1. yes $6,000 Debit
Related questions
The Colby Group has the following unadjusted trial balance as of August 31, 2019.
| Collby Group | ||
| Unadjusted Trial Balance | ||
| August 31, 2019 | ||
| Accounts Title | Debit | Credit |
| Cash | $17,300 | |
| Accounts Receivable | $37,000 | |
| Supplies | $7,400 | |
| Prepaid Insurance | $1,900 | |
| Equipment | $196,000 | |
| Notes Payable | $97,600 | |
| Accounts Payable | $26,000 | |
| Terry Collby, Capital | $129,150 | |
| Terry Collby, Drawings | $56,000 | |
| Fee Earned | $454,450 | |
| Wages Expense | $270,000 | |
| Rent Expense | $51,800 | |
| Advertising Expense | $25,200 | |
| Miscellaneous Expense | $5,100 | |
| Total | $667,700 | $707,200 |
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 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.
Required:
1. Prepare a corrected unadjusted trial balance as of August 31, 2019.
2. Does the fact that the unadjusted trial balance in (1) is balanced means that there are no errors in the accounts?
