Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 thetrial balance. You are to determine the following:
\begin{tabular}{|l|l|l|l|} \hline \multicolumn{1}{|c|}{ Statement of Problem } & Willthetrialbalancestillbalance? & Whatistheamountofthedifference? & Whichtrialbalancecolumnwillbecomeincrementallylarger? \\ \hline TheDividendaccountbalanceof$560waslistedinthetrialbalanceasacredit. & Yes No & $ & Debit Credit \\ \hline The$980AccountsReceivablebalanceinthegeneralledgerwaslistedas$890inthetrialbalance. & Yes No & $ & Debit Credit \\ \hline A$840credittoServiceRevenuewaspostedasa$840credittoDeferredRevenue. & Yes No & $ & Debit Credit \\ \hline \end{tabular} - 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:
- What is the amount of the difference between the two columns of the trial balance?
- Which trial balance column (debit or credit) will become incrementally larger?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started