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 $2,340 for a three-year policy was debited to Prepaid Insurance for $3,240 and credited to Cash for $2,340. Which of the following is true? The debit column on the trial balance would be higher than the credit total. If the totals on the trial balance are not equal, by how much is one column higher than the other? $ 900 b. A payment of $2,575 on account was debited to Accounts Payable for $3,219 and credited to Cash for $3,219. Which of the following is true? The debit and credit totals of the trial balance would be equal. 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 $4,640 was credited to Supplies for $4,640 and credited to Accounts Payable for $4,640. 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?

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 $2,340 for a three-year policy was debited to Prepaid Insurance for $3,240 and credited to Cash for $2,340. Which of the following is true? The debit column on the trial balance would be higher than the credit total. If the totals on the trial balance are not equal, by how much is one column higher than the other? $ 900 b. A payment of $2,575 on account was debited to Accounts Payable for $3,219 and credited to Cash for $3,219. Which of the following is true? The debit and credit totals of the trial balance would be equal. 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 $4,640 was credited to Supplies for $4,640 and credited to Accounts Payable for $4,640. 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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 caus 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, ente zero ("0") in the amount box. a. The payment of an insurance premium of $890 for a three-year policy was debited to Prepaid Insurance for $980 and credited to Cash for $890. Which of the following is true? The debit column on the trial balance would be higher than the credit total. 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? The debit and credit totals of the trial balance would be equal. If the totals on the trial balance are not equal, by how much is one column higher than…
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 $2,340 for a three-year policy was debited to Prepaid Insurance for $3,240 and credited to Cash for $2,340. Which of the following is true?The debit column on the trial balance would be higher than the credit total. If the totals on the trial balance are not equal, by how much is one column higher than the other?$fill in the blank 2 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?The debit and credit totals of the trial balance would be equal. If the totals on the trial balance are not equal, by how…
Errors affecting the trial balance 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 $2,340 for a three-year policy was debited to Prepaid Insurance for $3,240 and credited to Cash for $2,340. 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? $fill in the blank 2 b. A payment of $2,950 on account was debited to Accounts Payable for $3,245 and credited to Cash for $3,245. 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? $fill in the blank 4 c. A purchase of supplies on…
Errors affecting the trial balance For each of the following errors, considered individually, indicate whether the error would cause the trial balance totals to be unequal. If the error wo 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 equal, enter zero ("0") in the amount box. a. The payment of an insurance premium of $9,800 for a three-year policy was debited to Prepaid Insurance for $9,800 and credited to Cash for $8,900. Indicate whether the debit or credit total is higher and by how much. The debit total is higher v by s b. A payment of $350 on account was debited to Accounts Payable for $530 and credited to Cash for $530. Indicate whether the debit or credit total is higher and by how much. The debit and credit totals would be equal v by $ c. A purchase of supplies on account for $2,900 was debited to Supplies for $2,900 and debited to Accounts Payable for $2,900. Indicate…
. 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. The payment of an insurance premium of $5,400 for a three-year policy was debited to Prepaid Insurance for $5,400 and credited to Cash for $4,500. A payment of $270 on account was debited to Accounts Payable for $720 and credited to Cash for $720. A purchase of supplies on account for $1,600 was debited to Supplies for $1,600 and debited to Accounts Payable for $1,600.
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 an insurance premium of $5,610 for a three-year policy was debited to Prepaid Insurance for $6,510 and credited to Cash for $5,610. Which of the following is true?The debit and credit totals of the trial balance would be equal. If the totals on the trial balance are not equal, by how much is one column higher than the other?$ b. A payment of $2,200 on account was debited to Accounts Payable for $2,750 and credited to Cash for $2,750. Which of the following is true? If the totals on the trial balance are not equal, by how much is one column higher than the other?$ c. A purchase of supplies on…
A journal entry for a $75 payment for rent expense was posted as a debit to Salaries Expense and a credit to Cash. Which of the following statements correctly states the effect of the error on the trial balance? O A. The sum of the debits will exceed the sum of the credits by $75. O B. The sum of the debits will exceed the sum of the credits by $150. O C. The sum of the credits will equal the sum of the debits. O D. The sum of the credits will exceed the sum of the debits by $150.
A journal entry for a $700 payment for Prepaid Rent was erroneously recorded as a debit to Prepaid Rent for $100. and a credit to Cash for $700. Which of the following statements correctly states the effect of the error on the trial balance? A. The sum of the debits will exceed the sum of the credits by $600. B. The sum of the credits will exceed the sum of the debits by $600. C. The sum of the debits will exceed the sum of the credits by $100. D. The sum of the credits will exceed the sum of the debits by $100. 0 0 0 0
Why "A debit posting of 800 for prepaid insurance was posted to Insurance expense" will have a trial balance balanced and "A credit posting of 300 was posted to accounts payable twice" have a trial balance not balanced?
If a $335.00 debit item in the general journal is posted as a credit: By how much will the trial balance be out of balance? Explain how you might detect such an error.
A trial balance has total debits of $20,000 and total credits of $24,500. Which one of the following errors would create this imbalance? Explain.
After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $622,324 and Allowance for Doubtful Accounts has a balance of $20,510. What is the net realizable value of the accounts receivable? a.$601,814 b.$642,834 c.$20,510 d.$622,324