Which of the following is an example of an accural error?

a. failure to adjust Prepaid insurance to its proper balance at year end

b. failure to adjust Inventory to its proper balance at year end

c. failure to record depreciation at year end

d. none of the above

Please explain how you got the answer.

October 1, 2011, MarCo signs a one-year, 8% note payable for $10,000 with principle and interest due on Oct 1, 2012. It is Marco's only note outstanding. On October 1, 2012 when the note is paid, Marco debits Notes Payable and credits %10,800, the sum of principle and interest. The error is likely to be found because...

a. the bank reconciliation will be out of balance when the check clears

b. the trial balance will be out of balance by $800

c. the trial balance will show a balance in notes payable that is not normal

d. interest expense will be understated

Please explain how you got the answer.

While writing a check for $2,000 on April 25, 2012 for a computer purchased on December 25, 2011, you discover that when the purchase was made in December, the $2,000 had been credited to Notes Payable instead of Accounts Payable. If the books are closed, what single entry could you make?

a. Notes Payable 2000 (debit)

Accounts Payable 2000 (credit)

b. Notes Payable 2000 (debit)

Cash 2000 (credit)

c. Accounts Payable 2000 (debit)

Cash 2000 (credit)

d. Accounts Payable 2000 (debit)

Notes Payable 2000 (credit)

Please explain how you got the answer.