For each of the following errors, considered individually, indicate whether the error would cause the trial balance
Question:
For each of the following errors, considered individually, indicate whether the error would cause the trial balance totals to be unequal. If the error would cause the trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much.
a. The payment of an insurance premium of $9,800 for a three-year policy was debited to Prepaid Insurance for $9,800 and credited to Cash for $8,900.
b. A payment of $350 on account was debited to Accounts Payable for $530 and credited to Cash for $530.
c. A purchase of supplies on account for $2,900 was debited to Supplies for $2,900 and debited to Accounts Payable for $2,900.
Step by Step Answer:
Accounting
ISBN: 9781337902687
28th Edition
Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider