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 thefollowing 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

Introduction:- Journal entries used to record business transactions. Journal entries play vital role…

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 th following statements correctly states the effect of the error on the trial balance? OA. The sum of the debits will exceed the sum of the credits by $600. OB. The sum of the credits will exceed the sum of the debits by $600. OC. 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.

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 th following statements correctly states the effect of the error on the trial balance? OA. The sum of the debits will exceed the sum of the credits by $600. OB. The sum of the credits will exceed the sum of the debits by $600. OC. 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.

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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