Posting errors are identified below. For each item complete parts 1 through 4 described below: |
1. | Enter the amount of the difference between the two trial balance columns (debit and credit) due to the error. |
2. | Identify the trial balance column (debit or credit) with the larger amount if they are not equal. |
3. | Identify the account(s) affected by the error. |
4. | Indicate the amount by which the account(s) in column (3) is under- or overstated. |
Item (a) is completed as an example. |
a. | $1,750 debit to Rent Expense is posted as a $1,570 debit. |
(1) | Difference between Debit and Credit Columns |
$180 | |
(2) | Column with the Larger Total |
Credit | |
(3) | Identify account(s) incorrectly stated |
Rent Expense | |
(4) | Amount that account(s) is overstated or understated |
Rent Expense is understated by $180 |
b. | $3,500 credit to Cash is posted twice as two credits to Cash. |
(1) | Difference between Debit and Credit Columns | ||||||||||
(2) | Column with the Larger Total | ||||||||||
Credit | |||||||||||
(3) | Identify account(s) incorrectly stated | ||||||||||
Cash | |||||||||||
(4) | Amount that account(s) is overstated or understated. (You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers.) | ||||||||||
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c. | $7,000 debit to the Dividends account is debited to Common Stock. |
(1) | Difference between Debit and Credit Columns |
(2) | Column with the Larger Total |
None |
(3) | Identify account(s) incorrectly stated |
Common stock and Dividends |
(4) | Amount that account(s) is overstated or understated. (You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers.) | ||||||||||
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d. | $1,600 debit to Prepaid Insurance is posted as a debit to Insurance Expense. |
(1) | Difference between Debit and Credit Columns |
(2) | Column with the Larger Total |
None |
(3) | Identify account(s) incorrectly stated |
Prepaid insurance and Insurance expense |
(4) | Amount that account(s) is overstated or understated. (You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers.) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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