Indicate which of the following errors, each considered individually, would cause the trial balance totals to be
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a. A payment of $2,150 to a creditor was posted as a debit of $2,150 to Accounts Payable and a debit of $2,150 to Cash.
b. A fee of $4,600 earned and due from a client was not debited to Accounts Receivable or credited to a revenue account, because the cash had not been received.
c. A receipt of $3,100 from an account receivable was journalized and posted as a debit of $3,100 to Cash and a credit of $3,100 to Fees Earned.
d. A payment of $10,000 for equipment purchased was posted as a debit of $1,000 to Equipment and a credit of $1,000 to Cash.
e. Payment of a cash withdrawal of $15,000 was journalized and posted as a debit of $5,000 to Salary Expense and a credit of $15,000 to Cash.
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... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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