Indicate which of the following errors, each considered individually, would cause the trial balance totals to be
Question:
Indicate which of the following errors, each considered individually, would cause the trial balance totals to be unequal:
a. A payment of $7,000 for equipment purchased was posted as a debit of $700 to Equipment and a credit of $700 to Cash.
b. Payment of a cash dividend of $12,000 was journalized and posted as a debit of $21,000 to Salary Expense and a credit of $12,000 to Cash.
c. A fee of $1,850 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.
d. A payment of $1,475 to a creditor was posted as a debit of $1,475 to Accounts Payable and a debit of $1,475 to Cash.
e. A receipt of $325 from an account receivable was journalized and posted as a debit of $325 to Cash and a credit of $325 to Fees Earned.
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... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Inequality of trial balance totals would be caused by errors desc...View the full answer
Financial Accounting An Integrated Statements Approach
ISBN: 978-0324312119
2nd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
