Question
-Analyzing a trial balance error You are told the column totals in a trial balance are not equal. After careful analysis, you discover only one
-Analyzing a trial balance error
You are told the column totals in a trial balance are not equal. After careful analysis, you discover only one error. Specifically, a correctly journalized credit purchase of an automobile for $18,800 is posted from the journal to the ledger with an $18,800 debit to Automobiles and another $18,800 debit to Accounts Payable. The Automobiles account has a debit balance of $44,556 on the trial balance. Answer each of the following questions and compute the dollar amount of any misstatement. |
Part (a through d): |
For each of the following statements: |
1. | Select the appropriate choice from the 'Account Status' column |
2. | In cases where the amount is understated or overstated, use the 'Amount' column to fill in the amount by which the account or trial balance total is understated or overstated. |
(Enter the amounts understated with a minus sign.) |
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