Posting errors are identified in the following table. In column (1), enter the amount of the difference between the two trial balance columns (debit and credit) due to the error. In column (2), identify the trial balance column (debit or credit) with the larger amount if they are not equal. In column (3), identify the account(s) affected by the error. In column (4), indicate the amount by which the account(s) in column (3) is under- or overstated. Item (a) is completed as an example. Note: Select "None" if there is no effect. Description of Posting Error (1) Difference between Debit and (2) Column with the (3) Identify Account(s) Incorrectly Stated (4) Amount of account over- or understatement Credit Columns Larger Total a. $1,720 debit to Rent Expense is posted as a $1,270 debit. $ 450 Credit Rent Expense Rent Expense is understated by $450 b. $3,440 credit to Cash is posted twice as two credits to Cash. c. $1,570 debit to Prepaid Insurance is posted as a debit to Insurance Expense.
Posting errors are identified in the following table. In column (1), enter the amount of the difference between the two trial balance columns (debit and credit) due to the error. In column (2), identify the trial balance column (debit or credit) with the larger amount if they are not equal. In column (3), identify the account(s) affected by the error. In column (4), indicate the amount by which the account(s) in column (3) is under- or overstated. Item (a) is completed as an example. Note: Select "None" if there is no effect. Description of Posting Error (1) Difference between Debit and (2) Column with the (3) Identify Account(s) Incorrectly Stated (4) Amount of account over- or understatement Credit Columns Larger Total a. $1,720 debit to Rent Expense is posted as a $1,270 debit. $ 450 Credit Rent Expense Rent Expense is understated by $450 b. $3,440 credit to Cash is posted twice as two credits to Cash. c. $1,570 debit to Prepaid Insurance is posted as a debit to Insurance Expense.
College Accounting (Book Only): A Career Approach
13th Edition
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Chapter2: T Accounts, Debits And Credits, Trial Balance, And Financial Statements
Section: Chapter Questions
Problem 7E: The following errors were made in journalizing transactions. In each case, calculate the amount of...
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![Posting errors are identified in the following table. In column (1), enter the amount of the difference between the two trial balance
columns (debit and credit) due to the error. In column (2), identify the trial balance column (debit or credit) with the larger amount if they
are not equal. In column (3), identify the account(s) affected by the error. In column (4), indicate the amount by which the account(s) in
column (3) is under- or overstated. Item (a) is completed as an example.
Note: Select "None" if there is no effect.
(1)
Difference
between
Description of Posting Error
Debit and
Credit
Columns
Larger
Total
(2)
Column
with the
(3)
Identify Account(s)
Incorrectly Stated
(4)
Amount of account over- or understatement
a. $1,720 debit to Rent Expense is posted as a
$1,270 debit.
$
450 Credit
Rent Expense
Rent Expense is understated by $450
b. $3,440 credit to Cash is posted twice as two
credits to Cash.
c. $1,570 debit to Prepaid Insurance is posted as a
debit to Insurance Expense.
d. $30,100 debit to Machinery is posted as a debit
to Accounts Payable.
e. $4,340 credit to Services Revenue is posted as a
$434 credit.
f. $760 debit to Store Supplies is not posted.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe10ab071-1842-4207-8109-7ec14309817d%2Fddc61774-6ebf-4937-9e5d-3bbf5154fc0c%2Fplnv0jj_processed.png&w=3840&q=75)
Transcribed Image Text:Posting errors are identified in the following table. In column (1), enter the amount of the difference between the two trial balance
columns (debit and credit) due to the error. In column (2), identify the trial balance column (debit or credit) with the larger amount if they
are not equal. In column (3), identify the account(s) affected by the error. In column (4), indicate the amount by which the account(s) in
column (3) is under- or overstated. Item (a) is completed as an example.
Note: Select "None" if there is no effect.
(1)
Difference
between
Description of Posting Error
Debit and
Credit
Columns
Larger
Total
(2)
Column
with the
(3)
Identify Account(s)
Incorrectly Stated
(4)
Amount of account over- or understatement
a. $1,720 debit to Rent Expense is posted as a
$1,270 debit.
$
450 Credit
Rent Expense
Rent Expense is understated by $450
b. $3,440 credit to Cash is posted twice as two
credits to Cash.
c. $1,570 debit to Prepaid Insurance is posted as a
debit to Insurance Expense.
d. $30,100 debit to Machinery is posted as a debit
to Accounts Payable.
e. $4,340 credit to Services Revenue is posted as a
$434 credit.
f. $760 debit to Store Supplies is not posted.
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