Exercise 2-20 Identifying effects of posting errors on the
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.
Description of Posting Error | (1) |
Difference between Debit and Credit Columns
Column with the Larger Total
Identify account(s) Incorrectly Started
Amount That Account(S) Is Over. Of Understated
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Chapter 2 Solutions
FINANCIAL & MANAGERIAL ACCOUNTING
- 27. A debit balance of R1 123 in the general ledger was shown in the trial balance as a credit balance of R2 123. By how much will the trial balance not balance due to the above-mentioned error? A. R3 246 B. R3 266 C. R1 000 D. R1 633arrow_forward2. MC.03.002 A book of original entry is known as a a. ledger account. b. trial balance. c. general ledger. d. Taccount. e. Journal. 3.MC.03.003 An accountant wanting to know the balance of a particular account would refer to the a. source document. b. chart of accounts. c. journal. d. book of original entry. e. ledger. 4.MC.03.004 The process of subtotalling both sides of an account and recording the amount on that side is known as a. Journalizing. b. footing. c. balancing the accounts. d. taking a trial balance. e. posting. 5.MC.03.005 If the number of an account is 211, this probably means that the account is the first account in the a. Liabilities section. b. Owner's Equity section. c. Revenues section. d. Expenses section. e. Assets section. 6. MC.03.006 When an entry is posted, the last step in the process is a. placing the balance of the account in either the debit or credit column in the ledger. b. placing the account number in the Post. Ref. column of the ledger. c. placing…arrow_forwardQuestion 9 Which one of the following accounts appears on the credit side of a pre-adjustment trial balance? Select one: a. Fixed deposit b. Interest on loan c. Bank overdraft d. Debtors controlarrow_forward
- 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 a $2,720 debit to Rent Expense is posted as a $2,270 debit b. $5,440 credit to Cash is posted twice as two credits to Cash c. $2,570 debit to Prepaid Insurance is posted as a debit to Insurance Expense. d. $47,600 debit to Machinery is posted as a debit, to Accounts Payable e. $6,340 credit to Services Revenue is posted as a $634 credit. f. $1,760 debit to Store Supplies is not posted. (1) Difference between Debit and Credit Columns $…arrow_forwardPosting 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.arrow_forwardPosting 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.…arrow_forward
- 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.)arrow_forwardPosting errors are identified in the following table. In column (1), enter the amount of the difference between the two trial balance columns (debit & 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. (No effect then select "None".)arrow_forwardQ.2.1.5 Explain to Stella the difference between a stop order and debit orderarrow_forward
- A credit memorandum results in a(n) ___ in a customers accounts receivable file. A. memo B. decrease C. Transer D. Increasearrow_forwardMultiple choice: 1. Journalizing does not include A. Debiting account (s) that are affected. B. Crediting account(s) that are affected C. Posting the debits and credits to the accounts D. Entering the date 2. Corrections in accounts should be made by A. Correction fluid B. Neat erasure C. The ruling method D. A permanent markerarrow_forwardT-ACCOUNT FORMULAS I need to know how to solve for missing amounts on T-Accounts. I know what T-Accounts are, so I do not necessarily need that explanation. I need a mathematical type of equation formula. For Ex: Beginning Balance=Ending Balance + Debits -Credits. I need to know the formulas for each instance. 1) Beginning Balance that is on the DR side 2) MIssing transaction amount on the DR side 3) Ending Balance on the DR side 4) Beginning Balance that is on the CR side 5) Missing transaction amount that is on the CR side 6) Ending Balance that is on the CR side.arrow_forward
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