In this problem, you will be given three errors that may or may not affect the trial balance. You are to determine the following: 1. As a result of each error, will the trial balance still balance? Consider each error separately. If you determine that the trial balance will not balance as a result of the error, then answer the following questions: 2. What is the amount of the difference between the two columns of the trial balance? 3. Which trial balance column (debit or credit) will become incrementally larger? Statement of Problem Will the trial balance still balance? What is the amount of the difference? A credit entry to Accounts Payable for $890 was posted twice. Yes No The $980 Accounts Receivable balance in the general ledger was listed as $890 in the trial balance. Yes No The $370 balance in Service Revenue was listed as a debit.. Yes Which trial balance column will become incrementally larger? D Debit Credit Debit Credit NO No. $0 Debit Credit X [S To start his own business, Scott Butler put $26,300 of his personal cash into the business account. Given the following additional transactions calculate the ending balance of each of the following accounts after all journal entry amounts are posted: Cash, Accounts Receivable, Service Revenue, Prepaid Rent, and Rent Expense Item Description Ref Debit Credit 1 Accounts Receivable 1,600 Service Revenue 1,600 Cash Accounts Receivable 2 Cash 1,100 Service Revenue Accounts Receivable 1,100 Prepaid Rent 3 Prepaid Rent 1,500 Rent Expense Cash 1,500 4 Rent Expense 320 Prepaid Rent 320 On July 1, Sanchez Company paid $19,800 for two years of insurance in advance. Required: 1. How much will be expensed by the end of the calendar year? 2. How much will be in the Prepaid Insurance account at the end of the year, after the adjusting entries have been prepared and posted? 1. Amount expensed: 2. Amount in the Prepaid Insurance account: $0 Continue Submit Ass 2022 McGraw Hit LLC Al Rights Reserved. Terms of Use Priv