Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account. To identify: The amount of difference between two trail balance columns.

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Answer 1

Question

Chapter 2, Problem 20E

Summary Introduction

Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

To identify: The amount of difference between two trail balance columns.

2.

Summary Introduction

Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

To identify: The trail balance column (debit or credit) with larger amount.

3.

Summary Introduction

Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

To identify: the account affected by the error.
.

Description of posting error The account incorrectly stated)
a. 3600 debit to rent expense is posted as a $1340 Rent Expense
b. $6500 credit to cash is posted twice as two credits to cash Cash
c. $10900 debit to the Dividends account is debited to common stock Dividend and common stock
d. 2050 debit to prepaid insurance is posted as a debit to insurance expense Prepaid insurance and insurance expense
e. 38000 debit to machinery is posted as a debit to account payable Machinery and account payable
f. 5850 credit to service revenue us posted as a 585 credit Service revenue
g. 1390 debit to tore supplies is not posted Store supplies

Summary Introduction

Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

To identify: The amount by which the account in column (3) is under or overstated

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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.

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. (Select "None" if there is no effect.)

After preparing the trial balance, the accountant finds that the total of debit side is OMR 125,600 and Total of Credit Side OMR 126,500. This difference should be treated before rectification of errors was a. Debit Suspense account with OMR 900 b. Suspense account should be cancelled with OMR 1800 c. Debit Suspense account OMR 125,600 and Credit Trial Balance OMR 126,500 d. Credit Suspense account with OMR 900

Answer 2

Question

Chapter 2, Problem 20E

Summary Introduction

Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

To identify: The amount of difference between two trail balance columns.

2.

Summary Introduction

Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

To identify: The trail balance column (debit or credit) with larger amount.

3.

Summary Introduction

Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

To identify: the account affected by the error.
.

Description of posting error The account incorrectly stated)
a. 3600 debit to rent expense is posted as a $1340 Rent Expense
b. $6500 credit to cash is posted twice as two credits to cash Cash
c. $10900 debit to the Dividends account is debited to common stock Dividend and common stock
d. 2050 debit to prepaid insurance is posted as a debit to insurance expense Prepaid insurance and insurance expense
e. 38000 debit to machinery is posted as a debit to account payable Machinery and account payable
f. 5850 credit to service revenue us posted as a 585 credit Service revenue
g. 1390 debit to tore supplies is not posted Store supplies

Summary Introduction

Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

To identify: The amount by which the account in column (3) is under or overstated

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Answer 3

Question

Chapter 2, Problem 20E

Summary Introduction

Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

To identify: The amount of difference between two trail balance columns.

2.

Summary Introduction

Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

To identify: The trail balance column (debit or credit) with larger amount.

3.

Summary Introduction

Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

To identify: the account affected by the error.
.

Description of posting error The account incorrectly stated)
a. 3600 debit to rent expense is posted as a $1340 Rent Expense
b. $6500 credit to cash is posted twice as two credits to cash Cash
c. $10900 debit to the Dividends account is debited to common stock Dividend and common stock
d. 2050 debit to prepaid insurance is posted as a debit to insurance expense Prepaid insurance and insurance expense
e. 38000 debit to machinery is posted as a debit to account payable Machinery and account payable
f. 5850 credit to service revenue us posted as a 585 credit Service revenue
g. 1390 debit to tore supplies is not posted Store supplies

Summary Introduction

Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

To identify: The amount by which the account in column (3) is under or overstated

Expert Solution & Answer

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Answer 4

Question

Chapter 2, Problem 20E

Summary Introduction

Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

To identify: The amount of difference between two trail balance columns.

2.

Summary Introduction

Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

To identify: The trail balance column (debit or credit) with larger amount.

3.

Summary Introduction

Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

To identify: the account affected by the error.
.

Description of posting error The account incorrectly stated)
a. 3600 debit to rent expense is posted as a $1340 Rent Expense
b. $6500 credit to cash is posted twice as two credits to cash Cash
c. $10900 debit to the Dividends account is debited to common stock Dividend and common stock
d. 2050 debit to prepaid insurance is posted as a debit to insurance expense Prepaid insurance and insurance expense
e. 38000 debit to machinery is posted as a debit to account payable Machinery and account payable
f. 5850 credit to service revenue us posted as a 585 credit Service revenue
g. 1390 debit to tore supplies is not posted Store supplies

Summary Introduction

Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

To identify: The amount by which the account in column (3) is under or overstated

Expert Solution & Answer

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Answer 5

Chapter 2, Problem 20E

Summary Introduction

Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

To identify: The amount of difference between two trail balance columns.

2.

Summary Introduction

Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

To identify: The trail balance column (debit or credit) with larger amount.

3.

Summary Introduction

Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

To identify: the account affected by the error.
.

Description of posting error The account incorrectly stated)
a. 3600 debit to rent expense is posted as a $1340 Rent Expense
b. $6500 credit to cash is posted twice as two credits to cash Cash
c. $10900 debit to the Dividends account is debited to common stock Dividend and common stock
d. 2050 debit to prepaid insurance is posted as a debit to insurance expense Prepaid insurance and insurance expense
e. 38000 debit to machinery is posted as a debit to account payable Machinery and account payable
f. 5850 credit to service revenue us posted as a 585 credit Service revenue
g. 1390 debit to tore supplies is not posted Store supplies

Summary Introduction

Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

To identify: The amount by which the account in column (3) is under or overstated

Answer 6

Chapter 2, Problem 20E

Summary Introduction

Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

To identify: The amount of difference between two trail balance columns.

Answer 7

Chapter 2, Problem 20E

Summary Introduction

Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

To identify: The amount of difference between two trail balance columns.

Answer 8

2.

Summary Introduction

Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

To identify: The trail balance column (debit or credit) with larger amount.

Answer 9

2.

Summary Introduction

Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

To identify: The trail balance column (debit or credit) with larger amount.

Answer 10

3.

Summary Introduction

Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

To identify: the account affected by the error.
.

Description of posting error The account incorrectly stated)
a. 3600 debit to rent expense is posted as a $1340 Rent Expense
b. $6500 credit to cash is posted twice as two credits to cash Cash
c. $10900 debit to the Dividends account is debited to common stock Dividend and common stock
d. 2050 debit to prepaid insurance is posted as a debit to insurance expense Prepaid insurance and insurance expense
e. 38000 debit to machinery is posted as a debit to account payable Machinery and account payable
f. 5850 credit to service revenue us posted as a 585 credit Service revenue
g. 1390 debit to tore supplies is not posted Store supplies

Answer 11

3.

Summary Introduction

Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

To identify: the account affected by the error.
.

Description of posting error The account incorrectly stated)
a. 3600 debit to rent expense is posted as a $1340 Rent Expense
b. $6500 credit to cash is posted twice as two credits to cash Cash
c. $10900 debit to the Dividends account is debited to common stock Dividend and common stock
d. 2050 debit to prepaid insurance is posted as a debit to insurance expense Prepaid insurance and insurance expense
e. 38000 debit to machinery is posted as a debit to account payable Machinery and account payable
f. 5850 credit to service revenue us posted as a 585 credit Service revenue
g. 1390 debit to tore supplies is not posted Store supplies

Answer 12

Summary Introduction

Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

To identify: The amount by which the account in column (3) is under or overstated

Answer 13

Summary Introduction

Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

To identify: The amount by which the account in column (3) is under or overstated

Answer 14

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Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 2 - Provide the names of two (a) asset accounts, (b)...Ch. 2 - What is the difference between a note payable and...Ch. 2 - Prob. 3DQ Ch. 2 - Prob. 4DQ Ch. 2 - Prob. 5DQ Ch. 2 - Should a transaction be recorded first in a...Ch. 2 - Prob. 7DQ Ch. 2 - Why does the recordkeeper prepare a trial balance?Ch. 2 - Prob. 9DQ Ch. 2 - Prob. 10DQ

Solution Summary: The author describes journal entry as a technique of booking and recording financial transactions on any company.

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Chapter 2 Solutions

	Description of posting error	The account incorrectly stated)
a.	3600 debit to rent expense is posted as a $1340	Rent Expense
b.	$6500 credit to cash is posted twice as two credits to cash	Cash
c.	$10900 debit to the Dividends account is debited to common stock	Dividend and common stock
d.	2050 debit to prepaid insurance is posted as a debit to insurance expense	Prepaid insurance and insurance expense
e.	38000 debit to machinery is posted as a debit to account payable	Machinery and account payable
f.	5850 credit to service revenue us posted as a 585 credit	Service revenue
g.	1390 debit to tore supplies is not posted	Store supplies