Explain how each of the following posting errors affects a trial balance. State whether the trial balance will be out of balance because of the posting error, and indicate which side of the trial balance will have a higher amount after each independent entry is posted. If the posting error does not affect the equality of debits and credits in the trial balance, state that the error will not cause an inequality.
Explain how each of the following posting errors affects a trial balance. State whether the trial balance will be out of balance because of the posting error, and indicate which side of the trial balance will have a higher amount after each independent entry is posted. If the posting error does not affect the equality of debits and credits in the trial balance, state that the error will not cause an inequality.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![### Explanation of Posting Errors and Their Impact on Trial Balance
**Objective:**
Understand how each of the following posting errors affects a trial balance. Determine whether the trial balance will be out of balance because of the posting error and indicate which side of the trial balance will have a higher amount after each independent entry is posted. If the posting error does not affect the equality of debits and credits in the trial balance, state that the error will not cause an inequality.
#### Errors and Their Impact
1. **Error a: A $900 credit to Unearned Revenue was credited to Service Revenue.**
- This error does not affect the equality of debits and credits, it simply misstates the account balances. Therefore, the trial balance will not be out of balance.
- **Impact:** The error will not cause an inequality.
2. **Error b: A $3,400 credit to Accounts Payable was not posted.**
- The trial balance will be out of balance because the credits will be understated by $3,400.
- **Impact:** The debit side of the trial balance will be higher.
3. **Error c: A $900 debit to Rent Expense was posted twice.**
- The trial balance will be out of balance because the debits will be overstated by $900.
- **Impact:** The debit side of the trial balance will be higher.
4. **Error d: A $1,250 debit to Office Supplies was debited to Office Supplies Expense.**
- This error does not affect the equality of debits and credits, it simply misstates the account balances. Therefore, the trial balance will not be out of balance.
- **Impact:** The error will not cause an inequality.
5. **Error e: A $560 debit to Cash was posted as a $650 debit.**
- The trial balance will be out of balance because the debits will be overstated by $90 ($650 - $560).
- **Impact:** The debit side of the trial balance will be higher.
### Summary in Tabular Form
| Error | Explanation | Impact |
|-------|------------------------------------------------------------|---------------------------------------------|
| a | No effect on debit or credit equality | No inequality caused |
| b | Understated credits by $3,400 | Debit side will be higher |
| c | Overstated debits by $900 | Debit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb75e2346-ebf2-4e14-802c-14c74b6109ef%2F3ba85e30-c881-4e5e-a578-10ec0198657d%2Fottj7h_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Explanation of Posting Errors and Their Impact on Trial Balance
**Objective:**
Understand how each of the following posting errors affects a trial balance. Determine whether the trial balance will be out of balance because of the posting error and indicate which side of the trial balance will have a higher amount after each independent entry is posted. If the posting error does not affect the equality of debits and credits in the trial balance, state that the error will not cause an inequality.
#### Errors and Their Impact
1. **Error a: A $900 credit to Unearned Revenue was credited to Service Revenue.**
- This error does not affect the equality of debits and credits, it simply misstates the account balances. Therefore, the trial balance will not be out of balance.
- **Impact:** The error will not cause an inequality.
2. **Error b: A $3,400 credit to Accounts Payable was not posted.**
- The trial balance will be out of balance because the credits will be understated by $3,400.
- **Impact:** The debit side of the trial balance will be higher.
3. **Error c: A $900 debit to Rent Expense was posted twice.**
- The trial balance will be out of balance because the debits will be overstated by $900.
- **Impact:** The debit side of the trial balance will be higher.
4. **Error d: A $1,250 debit to Office Supplies was debited to Office Supplies Expense.**
- This error does not affect the equality of debits and credits, it simply misstates the account balances. Therefore, the trial balance will not be out of balance.
- **Impact:** The error will not cause an inequality.
5. **Error e: A $560 debit to Cash was posted as a $650 debit.**
- The trial balance will be out of balance because the debits will be overstated by $90 ($650 - $560).
- **Impact:** The debit side of the trial balance will be higher.
### Summary in Tabular Form
| Error | Explanation | Impact |
|-------|------------------------------------------------------------|---------------------------------------------|
| a | No effect on debit or credit equality | No inequality caused |
| b | Understated credits by $3,400 | Debit side will be higher |
| c | Overstated debits by $900 | Debit
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