AAn entity’s unadjusted trial balance does not equal. The following information was determined: • The debit posting for a sale on account was omitted. 5,000 • The balance of Prepaid assets was listed as a credit instead of debit 34,000 • The balance of Office expense was listed as Rent expense 16,000 • Accounts payable was listed as a debit instead of credit 4,000 How much is the difference between the total debits and total credits in the trial balance? 65,000 30,000 34,000 81,000

AAn entity’s unadjusted trial balance does not equal. The following information was determined: • The debit posting for a sale on account was omitted. 5,000 • The balance of Prepaid assets was listed as a credit instead of debit 34,000 • The balance of Office expense was listed as Rent expense 16,000 • Accounts payable was listed as a debit instead of credit 4,000 How much is the difference between the total debits and total credits in the trial balance? 65,000 30,000 34,000 81,000

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 8E: Would the following errors cause the trial balance to have equal or unequal totals? As a result of...

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An entity’s unadjusted trial balance does not equal. The following information was determined: • The debit posting for a sale on account was omitted. 5,000 • The balance of Prepaid assets was listed as a credit instead of debit 34,000 • The balance of Office expense was listed as Rent expense 16,000 • Accounts payable was listed as a debit instead of credit 4,000 How much is the difference between the total debits and total credits in the trial balance? 65,000 30,000 34,000 81,000
1. An entity's unadjusted trial balance does not equal. The following information was determined: Cash balance of P45,000 was erroneously extended to the trial balance as P54,000. The debit posting for a P5,000 sale on account was omitted. . Prepaid rent with a balance of P34,000 was extended to the credit column of the trial balance. Depreciation expense of P16,000 was erroneously recorded as Rent expense. Interest payable with a balance of P4,000 was extended to the debit column of the trial balance. How much is the difference between the total debits and total credits in the trial balance? a. 65,000 b. 81,000 d. 34,000 c. 56,000 2. What is the net effect of the under mentioned errors on the trial balance of an entity? 1 Total of sales was taken as P58,726 instead of P58,762 II. A P52 discount given to a customer was not posted in the sales discount account Sale of old furniture of P130 was credited to Machinery account. A credit sale of P250 was posted twice in the customer's IV…
Which of the following errors does NOT prove the equality of the trial balance debit and credits? a) A Miscellaneous expense for the transportation was omitted. b) A debit entry of P11,000 for rent was posted as P10,100 c) A payment for utilities was recorded twice. d) A debit to Supplies was recorded as debit to Equipment.
A payment of $4,950 to a creditor was posted as a debit of $4,950 to Accounts Pay-able and a debit of $4,950 to Cash. This entry would cause the trial balance to be unequal. True or False?
For each of the following errors, considered individually, indicate whether the error would cause the trial balance totals to be unequal. If the error would cause the trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much.a. The payment of cash for the purchase of office equipment of $12,900 was debited to Land for $12,900 and credited to Cash for $12,900.b. The payment of $1,840 on account was debited to Accounts Payable for $184 and credited to Cash for $1,840.c. The receipt of cash on account of $3,800 was recorded as a debit to Cash for $8,300 and a credit to Accounts Receivable for $3,800.
Choose the correct letter of the answer for each question. 1. The balance of allowance for bad debts in Entity A’s unadjusted trial balance is ₱100,000. If the adjustments columns in the worksheet show a debit adjustment of ₱20,000, how much is the balance of allowance for bad debts that is extended to the adjusted trial balance columns of the worksheet? a. 80,000 b. 100,000 c. 120,000 d. 0 2. The business acquires equipment. The business allocates the equipment’s cost over the equipment’s useful life, instead of expensing it right away. The portion of the equipment’s cost that is expensed during the period is recorded as a. Depletion expense. b. Extraction expense. c. Amortization expense. d. Depreciation expense. 3. Net sales minus cost of sales equals a. Gross profit. b. Net sales. c. Net profit. d. Net cost. 4. Which of the following is equal to total goods available for sale? A. Net purchases –…
How are revenues and expenses reported on the income statement under (a) the cash basis of accounting and (b) the accrual basis of accounting? Explain the purpose of the accounts Depreciation Expense and Accumulated Depreciation. Is it customary for the balances of the two accounts to be equal? (c) In what financial statements, if any, will each account appear? Why are adjustments needed at the end of an accounting period? Employees performed services in 20Y8, but the wages were not paid until 20Y9. During which year would the wages expense be reported on the income statement under (a) the cash basis? (b) the accrual basis?
e. is characterized by a legal distinction between the business as an economic unit and the owner.4. Ture or FalseAdvance payments from customers will be immediately recognized as revenue under cash basis accounting but not under accrual basis accounting.5. CaculatorThe supplies account on June 1 had a credit balance of $5,200, additional supplies were purchased on June 10 for $2,500 and June 23 for $1,400. The supplies on hand at June 30 were $3,000. The amount to be used for the appropriate adjusting entry isWISH GET ANSER BACK IN 1 HR. WILL BE APPRECIATE IF ANYONE CAN DO IT!!!!!!!!!!
The following accounts appear on an entity's unadjusted trial balance: I. CASH - 190,000 II. ACCOUNTS RECEIVABLE - 140,000 III. INVENTORY - 370,000 IV. PREPAID SUPPLIES - 60,000 V. EQUIPMENT - 900,000 VI. UNEARNED RENT INCOME - 220,000 VII. NOTES PAYABLE - 500,000 Which of these would least likely require a year-end adjustment? a. IV, VI, and VII b. II, IV, VI, and VII c. I and III d. all these require adjustments
Would the following errors cause the trial balance to have equal or unequal totals? As a result of the errors, which accounts are overstated (by how much) or understated (by how much)? a. A purchase of office equipment for 380 was recorded as a debit to Office Equipment for 38 and a credit to Cash for 38. b. A payment of 280 to a creditor was debited to Accounts Receivable and credited to Cash for 280 each. c. A purchase of supplies for 245 was recorded as a debit to Equipment for 245 and a credit to Cash for 245. d. A payment of 76 to a creditor was recorded as a debit to Accounts Payable for 76 and a credit to Cash for 67.
Analyze Trusty Companys trial balance and the additional information provided to determine the following: A. what is causing the trial balance to be out of balance B. any other errors that require corrections that are identified during your analysis C. the effect (if any) that correcting the errors will have on the accounting equation A review of transactions revealed the following facts: A service fee of $18,000 was earned (but not yet collected) by the end of the period but was accidentally not recorded as revenue at that time. A transposition error occurred when transferring the account balances from the ledger to the trial balance. Salaries expense should have been listed on the trial balance as $64,500 but was inadvertently recorded as $46,500. Two machines that cost $9,000 each were purchased on account but were not recorded in company accounting records.
Prior to its closing, Income Summary had total debits of 1,190,500 and total credits of 1,476,300. Briefly explain the purpose served by the income summary account and the nature of the entries that resulted in the 1,190,500 and the 1,476,300.