Two students are discussing the use of a trial balance. They wonder whether the following errors, each considered separately, would prevent the trial balance from balancing. What would you tell them?

• The bookkeeper debited Cash for $600 and credited Salaries and Wages Expenses for $600 for payment of wages.
• Cash collected on account was debited to Cash for $800, and Service Revenue was credited for $80.

2. Tony Rigatoni, a beginning accounting student, believes debit balance accounts are favorable and credit balances are unfavorable. Is Tony correct? Why? Why not?

3. Based on what you know thus far, all asset accounts hold a debit balance and all liability and equity accounts hold a credit balance. Is this statement true or false? Why?