A small business has $1,000 in their Bank Account, $1,000 in the Equipment Account and $2,000 in Capital. Then, the business buys $75 worth of Equipment and pays cash. The accounting entry made is: Credit Equipment $75 and Debit Bank $57. How does this error impact the Trial Balance? * The Trial Balance will not balance by $18 O The Trial Balance will not balance by $36 ($18 x 2) O The Trial Balance will not balance by $57 O The Trial Balance will not balance by $75

A small business has $1,000 in their Bank Account, $1,000 in the Equipment Account and $2,000 in Capital. Then, the business buys $75 worth of Equipment and pays cash. The accounting entry made is: Credit Equipment $75 and Debit Bank $57. How does this error impact the Trial Balance? * The Trial Balance will not balance by $18 O The Trial Balance will not balance by $36 ($18 x 2) O The Trial Balance will not balance by $57 O The Trial Balance will not balance by $75

Name: QuestionA small business has $1,000 in their Bank Account, $1,000 in
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Description: QuestionA small business has $1,000 in their Bank Account, $1,000 in the EquipmentAccount and $2,000 in Capital. Then, the business buys $75 worth of Equipmentand pays cash. The accounting entry made is: Credit Equipment $75 and DebitBank $57. How d

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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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Subject: accounting
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.
this multiple choice questions from ACCOUNTING PRINCIPLES I.I need the final answer.
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