The trial balance prepared by Arthur Company as of November 30, 2020, was not in balance. In searching for the error, an employee discovered that a transaction for the purchase of a typewriter on credit for P6,100 has been recorded by a debit of P6,100 to the Office Equipment account and a debit of P6,200 to Accounts Payable. The credit column of the incorrect trial balance had a total of P926,000.

a) Was the office equipment account overstated. understated, or correctly stated in the trial balance?

b) Was the total of the debit column of the trial balance overstated, understated, or correctly stated?

c) Was the Accounts Payable account overstated, understated, or correctly stated in the trial balance?

d) Was the total of the credit column of the trial balance overstated, understated, or correctly stated?

e) How much was the total of the debit column of the trial balance before correction of the error?

Question

The trial balance prepared by Arthur Company as of November 30, 2020, was not in balance. In searching for the error, an employee discovered that a transaction for the purchase of a typewriter on credit for P6,100 has been recorded by a debit of P6,100 to the Office Equipment account and a debit of P6,200 to Accounts Payable. The credit column of the incorrect trial balance had a total of P926,000.

a) Was the office equipment account overstated. understated, or correctly stated in the trial balance?

b) Was the total of the debit column of the trial balance overstated, understated, or correctly stated?

c) Was the Accounts Payable account overstated, understated, or correctly stated in the trial balance?

d) Was the total of the credit column of the trial balance overstated, understated, or correctly stated?

e) How much was the total of the debit column of the trial balance before correction of the error?

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The trial balance prepared by Arthur Company as of November 30, 2020, was not in balance. In searching for the error, an employee discovered that

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