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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.

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College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
Publisher: South-Western College Pub
ISBN: 9781337280570
BuyFind

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
Publisher: South-Western College Pub
ISBN: 9781337280570

Solutions

Chapter
Section
Chapter 2, Problem 8E
Textbook Problem

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)?

  1. 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.
  2. b. A payment of $280 to a creditor was debited to Accounts Receivable and credited to Cash for $280 each.
  3. c. A purchase of supplies for $245 was recorded as a debit to Equipment for $245 and a credit to Cash for $245.
  4. 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.

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Chapter 2 Solutions

College Accounting (Book Only): A Career Approach
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