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In this problem, you will be given three errors that may or may not affect the trial balance. You are to determine the following:
In this problem, you will be given three errors that may or may not affect the trial balance. You are to determine the following: 1. As a result of each error, will the trial balance still balance? Consider each error separately. If you determine that the trial balance will not balance as a result of the error, then answer the following questions: 2. What is the amount of the difference between the two columns of the trial balance? 3. Which trial balance column (debit or credit) will become incrementally larger? Statement of Problem Will the trial balance still balance? What is the amount of the difference? A payment of $875 on account for supplies previously purchased was recorded as a debit to Supplies Expense and a credit to Cash for $875. Which trial balance column will become incrementally larger? Yes No $ Debit Credit The $850 balance of Supplies in the general ledger was omitted from the trial balance. A payment of $240 on account for supplies previously purchased was recorded as a debit to Accounts Payable for $420 and a credit to Cash for $420. Yes No $ 850 Yes No 5 Debit O Credit Debit Credit
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