The accountant for Smistad Guitar Repair Company made a number of errors in journalizing and posting, as

Question:

The accountant for Smistad Guitar Repair Company made a number of errors in journalizing and posting, as described below:

1. A credit posting of $400 to Accounts Payable was omitted.

2. A debit posting of $750 for Rent Expense was debited to Prepaid Rent.

3. A collection on account of $100 was journalized and posted as a $100 debit to Cash and a $100 credit to Service Revenue.

4. A credit posting of $500 to Accounts Payable was made twice.

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

6. A debit of $475 to Advertising Expense was posted as $457.

7. A journal entry for the payment of $1,200 of salaries expense was posted twice.

Instructions

Considering each error separately, indicate the following using the format below, where error number 1 is given as an example.

(a) Will the trial balance be in balance?

(b) What is the amount of the error if the trial balance will not balance?

(c) Which trial balance column will have the larger total?

(d) Which account or accounts have an incorrect balance? If the balance in all of the accounts is correct, write "all correct."

The accountant for Smistad Guitar Repair Company made a number
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Related Book For  answer-question

Accounting Principles Part 1

ISBN: 978-1118306789

6th Canadian edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow

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