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For each of the following errors, considered individually, indicate whether the error would cause the trial...

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. If the debit and credit totals would be equal, enter zero ("0") in the amount box. a. The payment of an insurance premium of $5,610 for a three-year policy was debited to Prepaid Insurance for $6,510 and credited to Cash for $5,610. Which of the following is true? If the totals on the trial balance are not equal, by how much is one column higher than the other? $ b. A payment of $2,575 on account was debited to Accounts Payable for $1,803 and credited to Cash for $1,803. Which of the following is true? If the totals on the trial balance are not equal, by how much is one column higher than the other? $ c. A purchase of supplies on account for $2,050 was credited to Supplies for $2,050 and credited to Accounts Payable for $2,050. Which of the following is true? If the totals on the trial balance are not equal, by how much is one column higher than the other? $

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Answer #1
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a. Debits side is higher than credit side (6510 - 5610)=>$900
b debit and credit total will be equal $0
c. credit side is higher than debit side (2050+2050)[=$4,100

notes:

a. prepaid insurance should have been debited only by $5,610 but debiting it by $6,510 will result in excess debit of $900.

b.since the error is made in both debit and credit posting, the trail balance will agree despite of this error.

c.supplies should have been debited but it is credited, which means credit side will exceed debit side by double the amount of transaction =>2,050*2 =>$4,100.

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