The bookkeeper for John Castle's Equipment Repair made a number of errors in journalizing and posting, as described below:

1. A credit posting of \(\$ 400\) to Accounts Receivable was omitted.

2. A debit posting of \(\$ 750\) for Prepaid Insurance was debited to Insurance Expense.

3. A collection on account of \(\$ 100\) was journalized and posted as a debit to Cash \(\$ 100\) and a credit to Fees Earned \(\$ 100\).

4. A credit posting of \(\$ 300\) to Property Taxes Payable was made twice.

5. A cash purchase of supplies for \(\$ 250\) was journalized and posted as a debit to Supplies \(\$ 25\) and a credit to Cash \(\$ 25\).

6. A debit of \(\$ 465\) to Advertising Expense was posted as \(\$ 456\).

\section*{Instructions}

For each error, indicate

(a) whether the trial balance will balance; if the trial balance will not balance, indicate

(b) the amount of the difference, and

(c) the trial balance column that will have the larger total. Consider each error separately. Use the following form, in which error (1) is given as an example.

Transcribed Image Text:

(a) (b) (c) Error (1) In Balance Difference Larger Column No $400 debit