Ask Question
15 February, 07:20

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.

a. A $2,250 credit to Consulting Fees Earned in a journal entry is incorrectly posted to the ledger as a $2,250 debit, leaving the Consulting Fees Earned account with a $6,300 credit balance.

b. A $4,500 debit to Salaries Expense in a journal entry is incorrectly posted to the ledger as a $4,500 credit, leaving the Salaries Expense account with a $750 debit balance.

c. A $2,250 debit to Rent Expense in a journal entry is incorrectly posted to the ledger as a $2,250 credit, leaving the Rent Expense account with a $3,000 debit balance.

d. A $2,250 debit posting to Accounts Receivable was posted mistakenly to Cash.

e. A $4,500 debit posting to Equipment was posted mistakenly to Supplies.

f. An entry debiting Cash and crediting Notes Payable for $4,500 was mistakenly not posted.

+3
Answers (1)
  1. 15 February, 08:43
    0
    c. A $2,250 debit to Rent Expense in a journal entry is incorrectly posted to the ledger as a $2,250 credit, leaving the Rent Expense account with a $3,000 debit balance.

    Explanation:

    The above action is the only valid option that explains the variance between the sides of the trial balance because if an item meant for one side (debit) is erroneously posted to the other side (credit), the resultant effect will be double the amount posted. This happens because not only is the amount missing from one side but it has been erroneously added to the other side.

    Hence, since rent expense which has a debit balance was not debited to the tune of 2,250 and was again incorrectly posted as a credit, it will have an impact double its amount on the trial balance, which is 2250*2; $4500
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “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? ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers