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Assume that when a purchase of supplies of $2,650 for cash was recorded, both the debit and the credit were journalized and posted as $2,560. (A) Would this error cause the trial balance to be out of balance? (B) Would the trial balance be out of balance if the $2,650 entry had been journalized correctly but the credit to Cash had been posted as $2,560?

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Financial And Managerial Accounting

15th Edition
WARREN + 1 other
Publisher: Cengage Learning,
ISBN: 9781337902663

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Chapter
Section
BuyFindarrow_forward

Financial And Managerial Accounting

15th Edition
WARREN + 1 other
Publisher: Cengage Learning,
ISBN: 9781337902663
Chapter 2, Problem 7DQ
Textbook Problem
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Assume that when a purchase of supplies of $2,650 for cash was recorded, both the debit and the credit were journalized and posted as $2,560. (A) Would this error cause the trial balance to be out of balance? (B) Would the trial balance be out of balance if the $2,650 entry had been journalized correctly but the credit to Cash had been posted as $2,560?

(a)

To determine

Discuss whether an error of posting $2,560 instead of $2,650 to cash, and supplies account would cause the trial balance to be out of balance.

Explanation of Solution

Errors not affecting trial balance:

An error is a mistake committed in the process of book-keeping or in accounting.  In some cases, errors may occur but, they will not affect the totals of the trial balance. Such an error can be found while preparing the trial balance or would be indicated by the unusual account balance. For Example, Crediting land account...

(b)

To determine

Discuss whether an error of crediting cash accounts by $2,560 instead of $2,650, would cause the trial balance to be out of balance.

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Chapter 2 Solutions

Financial And Managerial Accounting
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