In this problem, you will be given three errors that may or may not affect the trial balance. You are to determine the following: (1) As a result of each error, will the trial balance still balance? Consider each error separately. If you determine that the trial balance will not balance as a result of the error, then answer the following questions: (2) What is the amount of the difference between the two columns of the trial balance? (3) Which trial balance column (debit or credit) will have the larger total? A. A payment of $490 on account for supplies previously purchased was recorded as a debit to Supplies Expense and a credit to Cash for $490B. A payment of $150 on account for supplies previously purchased was recorded as a debit to Accounts Payable for $150 and a credit to Cash for $510C. The $875 balance in Service Revenue was listed as a debit.

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Business

Bonilla

8 April, 15:14

In this problem, you will be given three errors that may or may not affect the trial balance. You are to determine the following: (1) As a result of each error, will the trial balance still balance? Consider each error separately. If you determine that the trial balance will not balance as a result of the error, then answer the following questions: (2) What is the amount of the difference between the two columns of the trial balance? (3) Which trial balance column (debit or credit) will have the larger total? A. A payment of $490 on account for supplies previously purchased was recorded as a debit to Supplies Expense and a credit to Cash for $490B. A payment of $150 on account for supplies previously purchased was recorded as a debit to Accounts Payable for $150 and a credit to Cash for $510C. The $875 balance in Service Revenue was listed as a debit.

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Kolby Durham · Answer 1

1) This error will not effect balancing of trial.

2) Total difference in both columns will be of $500 and credit side of trial balance will have larger balance.

3) Total difference in both columns will be of $1,750 and debit side will exceed from credit side.