4) Activity 5: Chec.. for Understanding (5 mins) Direction: Analyze the errors and their effect on trial balance, The bookkeeper for Bien Services made a number of errors in journalizing and posting, as describe below. 1. A credit posting of P4,000 to Accounts Receivable was omitted. 2. A debit posting of P7,500 for Prepaid Insurance wad debited to Insurance Expense. 3. A collection from customer of P1,000 in payment of its account owed was journalized and posted as a debit to Cash P1,000 and a credit to Service Revenue, P1,000. 4. A credit posting of P3,000 to Tax Payable was made twice. 5. A cash purchase of supplies for P2,500 was journalized and posted as a debit to Supplies P250 and a credit to Cash, P250. 6. A debit of P4,950 to Advertising Expense was posted as P4,590. Instructions For each error, a. Indicate whether the trial balance will balance b. If the trial balance will not balance, indicate the amount of the difference. c. Indicate the trial balance column that will have the larger total. Consider each error separately. Use the following form, in which error (1) is given as an example. Larger column (c) Error In-balance (a) Difference (b) 1 No P4,000 debit 2 4 6.
4) Activity 5: Chec.. for Understanding (5 mins) Direction: Analyze the errors and their effect on trial balance, The bookkeeper for Bien Services made a number of errors in journalizing and posting, as describe below. 1. A credit posting of P4,000 to Accounts Receivable was omitted. 2. A debit posting of P7,500 for Prepaid Insurance wad debited to Insurance Expense. 3. A collection from customer of P1,000 in payment of its account owed was journalized and posted as a debit to Cash P1,000 and a credit to Service Revenue, P1,000. 4. A credit posting of P3,000 to Tax Payable was made twice. 5. A cash purchase of supplies for P2,500 was journalized and posted as a debit to Supplies P250 and a credit to Cash, P250. 6. A debit of P4,950 to Advertising Expense was posted as P4,590. Instructions For each error, a. Indicate whether the trial balance will balance b. If the trial balance will not balance, indicate the amount of the difference. c. Indicate the trial balance column that will have the larger total. Consider each error separately. Use the following form, in which error (1) is given as an example. Larger column (c) Error In-balance (a) Difference (b) 1 No P4,000 debit 2 4 6.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:4) Activity 5: Chec., for Understanding (5 mins)
Direction: Analyze the errors and their effect on trial balance.
The bookkeeper for Bien Services made a number of errors in journalizing and posting, as describe
below.
1. A credit posting of P4,000 to Accounts Receivable was omitted.
2. A debit posting of P7,500 for Prepaid Insurance wad debited to Insurance Expense.
3. A collection from customer of P1,000 in payment of its account owed was
journalized and posted as a debit to Cash P1,000 and a credit to Service Revenue,
P1,000.
4. A credit posting of P3,000 to Tax Payable was made twice.
5. A cash purchase of supplies for P2,500 was journalized and posted as a debit to Supplies P250
and a credit to Cash, P250.
6. A debit of P4,950 to Advertising Expense was posted as P4,590.
Instructions
For each error,
a. Indicate whether the trial balance will balance
b. If the trial balance will not balance, indicate the amount of the difference.
c. Indicate the trial balance column that will have the larger total.
Consider each error separately. Use the following form, in which error (1) is given as an example.
Larger column (c)
Error
In-balance (a)
Difference (b)
1
No
P4,000
debit
3
4
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