For each of the following errors, considered individually, indicate whether the error would cause the trial balance
Question:
a. The payment of an insurance premium of $3,600 for a two-year policy was debited to Prepaid Insurance for $3,600 and credited to Cash for $6,300.
b. A payment of $725 on account was debited to Accounts Payable for $752 and credited to Cash for $752.
c. A purchase of supplies of $900 was debited to Supplies for $900 and debited to Accounts Payable for $900.
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
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Related Book For
Corporate Financial Accounting
ISBN: 9781337398169
15th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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