Homework Help is Here – Start Your Trial Now!
Business
Accounting
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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Answer only.
### 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
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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Market Efficiency
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS