You are told the column totals in a trial balance are not equal. After careful analysis, you discover only one error. Specifically, a correctly journalized credit purchase of an automobile for $18,950 is posted from the journal to the ledger with an $18,950 debit to Automobiles and another $18,950 debit to Accounts Payable. The Automobiles account has a debit balance of $37,100 on the trial balance. (1) Answer each of the following questions and (2) compute the dollar amount of any misstatement for parts a through d. a. Is the Debit column total of the trial balance overstated, understated, or correctly stated?b. Is the Credit column total of the trial balance overstated, understated, or correctly stated?c. Is the Automobiles account balance overstated, understated, or correctly stated in the trial balance?d. Is the Accounts Payable account balance overstated, understated, or correctly stated in the trial balance?e. If the Debit column total of the trial balance is $200,000 before correcting the error, what is the totalof the Credit column before correction?

a. Is the Debit column total of the trial balance overstated, understated, or correctly stated? b. Is the Credit column total of the trial balance overstated, understated, or correctly stated? c. Is the Automobiles account balance overstated, understated, or correctly stated in the trial balance? d. Is the Accounts Payable account balance overstated, understated, or correctly stated in the trial balance? e. If the Debit column total of the trial balance is $200,000 before correcting the error, what is the total of the Credit column before correction?

a. Is the Debit column total of the trial balance overstated, understated, or correctly stated? b. Is the Credit column total of the trial balance overstated, understated, or correctly stated? c. Is the Automobiles account balance overstated, understated, or correctly stated in the trial balance? d. Is the Accounts Payable account balance overstated, understated, or correctly stated in the trial balance? e. If the Debit column total of the trial balance is $200,000 before correcting the error, what is the total of the Credit column before correction?

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter2: T Accounts, Debits And Credits, Trial Balance, And Financial Statements

Section: Chapter Questions

Problem 5QY: When preparing a trial balance, which of the following is correct? a. The purpose of the trial...

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When preparing a trial balance, which of the following is correct? a. The purpose of the trial balance is to prove that the total of all debit balances equals the total of all credit balances. b. Advertising Expense would normally be recorded as a credit. c. The trial balance is considered to be a financial statement. d. Supplies would normally be recorded as a credit.
For the following accounts indicate whether the normal balance is a debit or a credit. A. Unearned Revenue B. Interest Expense C. Rent Expense D. Rent Revenue E. Accounts Payable F. Cash G. Supplies H. Accounts Payable I. Equipment J. Utilities Expense
Which of the following pairs of accounts are impacted the same with debits and credits? A. Cash and Unearned Service Revenue B. Electricity Expense and Office Supplies C. Accounts Receivable and Accounts Payable D. Buildings and Common Stock
What is the difference between an account and a ledger? What are the parts of a T account? How are transactions recorded in a journal? Do the terms debit and credit signify increase or decrease, or can they signify either? What is a trial balance? If the two totals of a trial balance are equal, does it mean there are no errors in the accounting records?
Which statement is false?a. A trial balance lists all the accounts with their current balances.b. A trial balance can be taken at any time.c. A trial balance can verify the equality of debits and credits.d. A trial balance is the same as a balance sheet
The normal balance of an account is on the Debit side of the account Side represented by increase in the account balance Side represented by decrease in the account balance O Credit side of the account with explanation please
A. Discuss briefly how transactions are accounted for events after the reporting period.B. How do you make adjustments for a non-counter balancing error and does it affect the present financial statements?C. In case the books of accounts are not yet closed what financial statements account/accounts must be adjusted? Why?
For each of the following situations, indicate whether itrepresents an accounting error and explain why it is or isnot an error. Also state whether a trial balance would indicate that an error exists for each situation.d. The debit side of a journal entry was recorded in theaccounts, but the credit side was not.
Which of the following is provided by a trial balance inwhich total debits equal total credits?a. Proof that no transaction was completely omitted fromthe ledger during the posting process.b. Proof that the correct debit or credit balance has beencomputed for each account.c. Proof that the ledger is in balance.d. Proof that transactions have been correctly analyzed andrecorded in the proper accounts.
What is the purpose of a worksheet? In a columnar worksheet similar to Illustration 2A–1 , what would be the result of incorrectly transferring the balance in a liability account to column K, the credit column under income statement?
Indicate whether a debit or credit decreases the normal balance of each of the following accounts. Land
An account is said to have a debit balance if ? Select one: a. The amount of debit exceeds the amount of the credits b. There are more entries on the debit side than on the credit side c. None of above d. The last entry of the accounting period was posted on the debit side