Question
NEED THE ANSWERS ASAP!! THANKS IN ADVANCE! Effect of Errors on a Trial Balance The bookkeeper for Riley Inc. made the following errors: Required: Select
NEED THE ANSWERS ASAP!! THANKS IN ADVANCE!
Effect of Errors on a Trial Balance
The bookkeeper for Riley Inc. made the following errors:
Required: Select the correct option from the questions below.
Indicate whether or not the trial balance will balance after the error. If the trial balance will not balance, indicate the direction of the misstatement for any affected account (such as Cash will be overstated by $50).
a. A cash purchase of supplies of $348 was recorded as a debit to Supplies for $384 and a credit to Cash of $384.
A. The trial balance WILL balance; but there is still an error.
B. The transaction was recorded at an incorrect dollar amount.
C. Supplies will be overstated by $36 and cash will be understated by $36.
D. The trial balance WILL balance; both accounts will be correct.
E. The trial balance WILL NOT balance; Supplies will be understated by $36 and cash will be overstated by $36.
F. The trial balance WILL balance; both accounts will be overstated.
G. The trial balance WILL NOT balance; accounts receivable will be understated.
H. The trial balance WILL NOT balance; Supplies will be understated by $36 and cash will be overstated by $36.
b. A cash sale of $3,128 was recorded as a debit to Cash of $3,128 and a credit to Sales of $3,182.
A. The trial balance WILL balance; but there is still an error.
B. The trial balance WILL balance; both accounts will be correct.
C. The trial balance WILL NOT balance; sales will be overstated by $54.
D. The trial balance WILL balance; both accounts will be overstated.
E. The trial balance WILL NOT balance; accounts receivable will be understated $54.
F. The trial balance WILL NOT balance; sales will be overstated by $54.
c. A purchase of equipment, on account, was recorded once in the journal and posted twice to the ledger.
A. The trial balance WILL balance; but there is still an error.
B. The trial balance WILL balance; both accounts will be correct.
C. The trial balance WILL NOT balance; sales will be overstated.
D. The trial balance WILL balance; both accounts will be overstated.
E. The trial balance WILL NOT balance; accounts receivable will be understated.
F. The trial balance WILL NOT balance; accounts receivable will be understated.
4. Cash paid for salaries of $5,270 was recorded as a debit to Salaries Expense of $5,270 and a credit to Accounts Payable of $5,270.
A. The trial balance WILL balance; but there is still an error.
B. The trial balance WILL balance; both accounts will be correct.
C. The trial balance WILL NOT balance; sales will be overstated.
D. The trial balance WILL balance; both accounts will be overstated.
E. The trial balance WILL balance; accounts payable will be overstated by $5,270 and cash will be overstated by $5,270.
F. The trial balance WILL balance; accounts payable will be understated by $5,270 and cash will be understated by $5,270.
G. The trial balance WILL balance; accounts payable will be understated by $5,270 and cash will be understated by $5,270.
5. A credit sale of $7,600 was recorded as a credit to Sales Revenue of $7,600; however, the debit posting to Accounts Receivable was omitted.
A. The trial balance WILL balance; but there is still an error.
B. The trial balance WILL balance; both accounts will be correct.
C. The trial balance WILL NOT balance; sales will be overstated by $7,600.The trial balance WILL balance; both accounts will be overstated.
D. The trial balance WILL NOT balance; accounts receivable will be understated by $7,600.
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