The following errors occurred in posting from a two-column journal: 1. A debit of $1,250 to Supplies

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The following errors occurred in posting from a two-column journal:
1. A debit of $1,250 to Supplies was posted twice.
2. A debit of $3,575 to Wages Expense was posted as $3,557.
3. A credit of $4,175 to Accounts Payable was not posted.
4. A debit of $400 to Accounts Payable was posted as a credit.
5. An entry debiting Accounts Receivable and crediting Fees Earned for $6,000 was not posted.
6. A credit of $350 to Cash was posted as $530.
7. A debit of $1,000 to Cash was posted to Miscellaneous Expense.
Considering each case individually (i.e., assuming that no other errors had occurred), indicate:
(a) By €œyes€ or €œno€ whether the trial balance would be out of balance;
(b) If answer to (a) is €œyes,€ the amount by which the trial balance totals would differ; and
(c) Whether the debit or credit column of the trial balance would have the larger total. Answers should be presented in the following form, with error (1) given as anexample:
The following errors occurred in posting from a two-column journal: 1.
Accounts Payable
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...
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Financial Accounting An Integrated Statements Approach

ISBN: 978-0324312119

2nd Edition

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

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