The bookkeeper for Arno Equipment Repair NV made a number of errors in journalizing and posting, as

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The bookkeeper for Arno Equipment Repair NV made a number of errors in journalizing and posting, as described below.
1. A credit posting of ‚¬400 to Accounts Receivable was omitted.
2. A debit posting of ‚¬750 for Prepaid Insurance was debited to Insurance Expense.
3. A collection from a customer of ‚¬100 in payment of its account owed was journalized and posted as a debit to Cash ‚¬100 and a credit to Service Revenue ‚¬100.
4. A credit posting of ‚¬300 to Property Taxes Payable was made twice.
5. A cash purchase of supplies for ‚¬250 was journalized and posted as a debit to Supplies ‚¬230 and a credit to Cash ‚¬230.
6. A debit of ‚¬495 to Advertising Expense was posted as ‚¬459.
Instructions
For each error:
(a) Indicate whether the trial balance will balance.
(b) If the trial balance will not balance, indicate the amount of the difference.
(c) Indicate the trial balance column that will have the larger total.
Consider each error separately. Use the following form, in which error (1) is given as an example.
The bookkeeper for Arno Equipment Repair NV made a number
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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Related Book For  book-img-for-question

Financial Accounting

ISBN: 978-1118978085

IFRS 3rd edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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