For each of the following errors, considered individually, indicate whether the error would cause the trial balance totals to be unequal. If the error would caus the trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much. If the debit and credit totals would be equal, ente zero ("0") in the amount box. a. The payment of an insurance premium of $890 for a three-year policy was debited to Prepaid Insurance for $980 and credited to Cash for $890. Which of the following is true? The debit column on the trial balance would be higher than the credit total. If the totals on the trial balance are not equal, by how much is one column higher than the other? b. A payment of $2,575 on account was debited to Accounts Payable for $1,803 and credited to Cash for $1,803. Which of the following is true? The debit and credit totals of the trial balance would be equal. If the totals on the trial balance are not equal, by how much is one column higher than the other? c. A purchase of supplies on account for $4,630 was credited to Supplies for $4,630 and credited to Accounts Payable for $4,630. Which of the following is true? The credit column on the trial balance would be higher than the debit total. If the totals on the trial balance are not equal, by how much is one column higher than the other?
For each of the following errors, considered individually, indicate whether the error would cause the trial balance totals to be unequal. If the error would caus the trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much. If the debit and credit totals would be equal, ente zero ("0") in the amount box. a. The payment of an insurance premium of $890 for a three-year policy was debited to Prepaid Insurance for $980 and credited to Cash for $890. Which of the following is true? The debit column on the trial balance would be higher than the credit total. If the totals on the trial balance are not equal, by how much is one column higher than the other? b. A payment of $2,575 on account was debited to Accounts Payable for $1,803 and credited to Cash for $1,803. Which of the following is true? The debit and credit totals of the trial balance would be equal. If the totals on the trial balance are not equal, by how much is one column higher than the other? c. A purchase of supplies on account for $4,630 was credited to Supplies for $4,630 and credited to Accounts Payable for $4,630. Which of the following is true? The credit column on the trial balance would be higher than the debit total. If the totals on the trial balance are not equal, by how much is one column higher than the other?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:For each of the following errors, considered individually, indicate whether the error would cause the trial balance totals to be unequal. If the error would caus
the trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much. If the debit and credit totals would be equal, ente
zero ("0") in the amount box.
a. The payment of an insurance premium of $890 for a three-year policy was debited to Prepaid Insurance for $980 and credited to Cash for $890.
Which of the following is true?
The debit column on the trial balance would be higher than the credit total.
If the totals on the trial balance are not equal, by how much is one column higher than the other?
b. A payment of $2,575 on account was debited to Accounts Payable for $1,803 and credited to Cash for $1,803.
Which of the following is true?
The debit and credit totals of the trial balance would be equal.
If the totals on the trial balance are not equal, by how much is one column higher than the other?
c. A purchase of supplies on account for $4,630 was credited to Supplies for $4,630 and credited to Accounts Payable for $4,630.
Which of the following is true?
The credit column on the trial balance would be higher than the debit total.
If the totals on the trial balance are not equal, by how much is one column higher than the other?
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