The bookkeeper for Fred Kelley??s dance studio made the following errors in journalizing and posting.1. A credit
Question:
The bookkeeper for Fred Kelley??s dance studio made the following errors in journalizing and posting.1. A credit to Supplies of $600 was omitted.2. A debit posting of $300 to Accounts Payable was inadvertently debited to Accounts Receivable.3. A purchase of supplies on account of $450 was debited to Supplies for $540 and credited to Accounts Payable for $540.4. A credit posting of $680 to Interest Payable was posted twice.5. A debit posting to Income Taxes Payable for $250 and a credit posting to Cash for $250 were made twice.6. A debit posting for $1,200 of Dividends was inadvertently posted to Salaries andWages Expense instead.7. A credit to Service Revenue for $450 was inadvertently posted as a debit to Service Revenue.8. A credit to Accounts Receivable of $250 was credited to Accounts Payable.InstructionsFor each error, indicate(a) Whether the trial balance will balance;(b) The amount of the difference if the trial balance will not balance; and(c) 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 anexample.
Accounts PayableAccounts 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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Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso