Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1- For each one of the following errors state if it will be detected by the trial balance or not. Explain your answer. (1 point

image text in transcribed
1- For each one of the following errors state if it will be detected by the trial balance or not. Explain your answer. (1 point each) a- The installation cost of a new machine at $45,000 is accounted for by debiting the wage expense account instead of debiting the machinery account. b- When the owner withdrew $30,000 for his personal use, the cash account was credited and the drawings account was credited. c- When the owner invested $150,000 cash the business, the account payables was credited and the cash was debited. d- The transaction of the business paying salaries $10,400 to its employees in cash the end of the month was not recorded. e- When the business purchased supplies for $2,000, the supplies account was debited by $2,000 and the cash account was credit by $20,000. f- When the business sells products on credit for $23,000, the accounts receivables account was debited and the cash account was credited by $23,000. g-When the business pays its rent of $25,000 at the end of the year, the cash account is debited by $25,000 but no other account was involved. 2- For errors (c), (d) and (f), explain how to correct them by stating the accounts to be debited and credited with their relevant amounts. ( 3 points)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Accounting And Financial Audit

Authors: Landry Kouamé

1st Edition

620430481X, 978-6204304816

More Books

Students also viewed these Accounting questions

Question

b. What groups were most represented? Why do you think this is so?

Answered: 1 week ago