Question

Effect of Errors on Adjusted Trial Balance For each of the following errors, considered individually, indicate...

Effect of Errors on Adjusted Trial Balance

For each of the following errors, considered individually, indicate whether the error would cause the adjusted trial balance totals to be unequal. If the error would cause the adjusted trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much.

a. The adjustment of $9,800 for accrued fees earned was journalized as a debit to Accounts Receivable for $9,800 and a credit to Fees Earned for $8,900.

Enter the difference between the debit and credit totals. If the totals are equal, enter a zero.
$

b. The adjustment of depreciation of $3,600 was omitted from the end-of-period adjusting entries.

Enter the difference between the debit and credit totals. If the totals are equal, enter a zero.
$

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer:-a) Debit side Higher by $900

The debit and credit were not posted as the same amount, causing the adjusted trial balance totals to be unequal.

Debit Credit

Before Error Equal Equal

After Error (Increase) $9,800 $8,900   

Diffrence $ 900

Answer:- b) $0 (Totals are equal both debit & credit of Trial)

Effect of omitting adjustment entry for depreciation of $3600.

Error omission is two types :-

Full omission

Partial omission

Full omission not effected on trial.Partial omission may effect on trial.

INCOME STATEMENT:

revenues - no effect
expenses - understated
net income - overstated

RETAINED EARNINGS STATEMENT:
net income - overstated
retained earnings - overstated

BALANCE SHEET:
assets - overstated
liabilities - no effect
Owner/SH Fund- overstated

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Effect of Errors on Adjusted Trial Balance For each of the following errors, considered individually, indicate...
Effect of Errors on Adjusted Trial Balance For each of the following errors, considered individually, indicate whether the error would cause the adjusted trial balance totals to be unequal. If the error would cause the adjusted trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much. a. The adjustment for accrued wages of $5,200 was journalized as a debit to Wages Expense for $5,200 and a credit to Accounts Payable for...
Trial Balance Errors For each of the following errors, considered individually, indicate whether the error would...
Trial Balance Errors 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 cash for the purchase of office equipment of $2,340 was debited...
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...
Which of the following errors, each considered individually, would cause the trial balance totals to be...
Which of the following errors, each considered individually, would cause the trial balance totals to be unequal? Cash received from customers on account was posted as a debit of $177 to Cash and a credit of $177 to Accounts Payable. A payment of $561 to a creditor was posted as a debit of $5,619 to Accounts Payable and a credit of $561 to Cash. A transaction was not posted. A payment of $129 for insurance was posted as a debit...
Corrected Trial Balance The Colby Group has the following unadjusted trial balance as of August 31,...
Corrected Trial Balance The Colby Group has the following unadjusted trial balance as of August 31, 2019. The Colby Group Unadjusted Trial Balance August 31, 2019 Debit Balances Credit Balances Cash 18,680 Accounts Receivable 33,440 Supplies 4,390 Prepaid Insurance 4,730 Equipment 106,000 Notes Payable 44,100 Accounts Payable 9,490 Terry Colby, Capital 68,180 Terry Colby, Drawing 23,200 Fees Earned 350,100 Wages Expense 206,686 Rent Expense 40,900 Advertising Expense 17,200 Miscellaneous Expense 11,200 466,426 471,870 The debit and credit totals are not...
The following is the adjusted trial balance for Stockton Company. Stockton Company Adjusted Trial Balance December...
The following is the adjusted trial balance for Stockton Company. Stockton Company Adjusted Trial Balance December 31 Cash 5,689 Accounts Receivable 2,748 Prepaid Expenses 732 Equipment 13,183 Accumulated Depreciation 8,786 Accounts Payable 1,469 Notes Payable 4,740 Common Stock 1,000 Retained Earnings 5,291 Dividends 774 Fees Earned 6,228 Wages Expense 2,812 Rent Expense 751 Utilities Expense 468 Depreciation Expense 235 Miscellaneous Expense 122 Totals 27,514 27,514 Determine the retained earnings ending balance. a.$6,291 b.$27,514 c.$6,357 d.$1,840
The following is the adjusted trial balance for Stockton Company. Stockton Company Adjusted Trial Balance December...
The following is the adjusted trial balance for Stockton Company. Stockton Company Adjusted Trial Balance December 31 Cash 5,106 Accounts Receivable 2,539 Prepaid Expenses 767 Equipment 15,712 Accumulated Depreciation 4,396 Accounts Payable 1,787 Notes Payable 5,518 Common Stock 1,000 Retained Earnings 7,935 Dividends 865 Fees Earned 8,069 Wages Expense 2,198 Rent Expense 754 Utilities Expense 428 Depreciation Expense 223 Miscellaneous Expense 113 Totals 28,705 28,705 Determine the retained earnings ending balance. a.$11,423 b.$28,705 c.$4,353 d.$8,935
Katie Long owns and operates KL Company. Transactions for the month of March have been posted...
Katie Long owns and operates KL Company. Transactions for the month of March have been posted to the T accounts. An intern has prepared a trial balance from the T accounts, but there seem to be some errors. Required: 1. In the Transactions panel, descriptions of the transactions for the month of March are provided. Each of the transactions in the Transactions panel has been posted to the T accounts. Referring to the T accounts, select the date on which...
Use the adjusted trial balance for Stockton Company to answer the question that follows. Stockton Company...
Use the adjusted trial balance for Stockton Company to answer the question that follows. Stockton Company Adjusted Trial Balance December 31     Account No. Debit Balances Credit Balances Cash 11 6,612     Accounts Receivable 12 2,647     Prepaid Expenses 13 677     Equipment 18 14,894     Accumulated Depreciation 19     1,479 Accounts Payable 21     1,489 Notes Payable 22     5,710 Bob Steely, Capital 31     14,347 Bob Steely, Drawing 32 787     Fees Earned 41     6,939 Wages Expense 51 2,915     Rent Expense 52 787     Utilities Expense 53 313     Depreciation...
Use the adjusted trial balance for Stockton Company to answer the questions that follow. Stockton Company...
Use the adjusted trial balance for Stockton Company to answer the questions that follow. Stockton Company Adjusted Trial Balance December 31 Account No. Debit Balances Credit Balances Cash 11 6,530 Accounts Receivable 12 2,100 Prepaid Expenses 13 700 Equipment 18 13,700 Accumulated Depreciation 19 1,100 Accounts Payable 21 1,900 Notes Payable 22 4,300 Bob Steely, Capital 31 12,940 Bob Steely, Drawing 32 790 Fees Earned 41 9,250 Wages Expense 51 2,500 Rent Expense 52 1,960 Utilities Expense 53 775 Depreciation...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT