Required Explain how each of the following posting errors affects a trial balance. State whether the trial
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Explain how each of the following posting errors affects a trial balance. State whether the trial balance will be out of balance because of the posting error, and indicate which side of the trial balance will have a higher amount after each independent entry is posted. If the posting error does not affect the equality of debits and credits in the trial balance, state that the error will not cause an inequality and explain why.
a. A $2,000 credit to Salaries Payable was not posted.
b. A $5,400 debit to Cash was posted as a $4,500 debit.
c. A $3,000 debit to Prepaid Rent was debited to Rent Expense.
d. A $2,500 credit to Accounts Payable was posted as a credit to Cash.
e. The collection of $400 of accounts receivable was posted to Accounts Receivable twice.
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Related Book For
Fundamental Financial Accounting Concepts
ISBN: 978-0078025907
9th edition
Authors: Thomas Edmonds, Christopher Edmonds
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