The bookkeeper for Stan Tucci Equipment Repair made a number of errors in journalizing and posting, as
Question:
The bookkeeper for Stan Tucci Equipment Repair made a number of errors in journalizing and posting, as described below.
1. Acredit posting of $400 to Accounts Receivable was omitted.
2. A debit posting of $750 for Prepaid Insurance was debited to Insurance Expense.
3. A collection from a customer of $100 in payment of its account owed was journalized and posted as a debit to Cash $100 and a credit to Service Revenue $100.
. Acredit posting of $300 to Property Taxes Payable was made twice.
. Acash purchase of supplies for $250 was journalized and posted as a debit to Supplies
$25 and a credit to Cash $25.
6. A debit of $495 to Advertising Expense was posted as $459.
Instructions For each error:
(a) Indicate whether the trial balance will balance.
(b) If the trial balance will not balance, indicate the amount of the difference.
(c) Indicate the trial balance column that will have the larger total.
Consider each error separately. Use the following form, in which error (1) is given as an example.
(a)
(b) (c)
Error In Balance Difference Larger Column (1) No $400 debit
Step by Step Answer:
Financial Accounting
ISBN: 9780470929384
8th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, J. Mather