Assume that a trial balance has been prepared and that the total P.O. 8 of the debit balances is not equal to the total of the credit balances. On a sheet of paper, set up like the example below, note the amount by which the two totals Determine the effects of erroR.

would differ, and identify which column is understated or overstated

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Error 0. Example: A $271 debit to Accounts Receivable was not recorded. a. A $23 debit to Supplies was recorded as $230. b. A $155 debit to Accounts Payable was recorded twice. c. A $77 debit to Prepaid Insurance was not recorded. d. A $52 credit to Cash was not recorded. e. A $260 debit to Equipment was recorded twice. f. A $73 debit to Supplies was recorded as a $73 debit to Miscella- neous Expense. Amount of Difference $271 Debit or Credit Column Understated or Overstated Debit column understated