Posting errors are identified in the following table. In column (1), enter the amount of the difference between the two trial balancecolumns (debit and credit) due to the error. In column (2), identify the trial balance column (debit or credit) with the larger amount if theyare not equal. In column (3), identify the account(s) affected by the error. In column (4), indicate the amount by which the account(s) incolumn (3) is under- or overstated. Item (a) is completed as an example.Note: Select "None" if there is no effect.(1)DifferencebetweenDescription of Posting ErrorDebit andCreditColumnsLargerTotal(2)Columnwith the(3)Identify Account(s)Incorrectly Stated(4)Amount of account over- or understatementa. $1,720 debit to Rent Expense is posted as a$1,270 debit.$450 CreditRent ExpenseRent Expense is understated by $450b. $3,440 credit to Cash is posted twice as twocredits to Cash.c. $1,570 debit to Prepaid Insurance is posted as adebit to Insurance Expense.d. $30,100 debit to Machinery is posted as a debitto Accounts Payable.e. $4,340 credit to Services Revenue is posted as a$434 credit.f. $760 debit to Store Supplies is not posted.

The error in trial balance leads to effect the total of debit and credit side of trial balance. The…

Posting errors are identified in the following table. In column (1), enter the amount of the difference between the two trial balance columns (debit and credit) due to the error. In column (2), identify the trial balance column (debit or credit) with the larger amount if they are not equal. In column (3), identify the account(s) affected by the error. In column (4), indicate the amount by which the account(s) in column (3) is under- or overstated. Item (a) is completed as an example. Note: Select "None" if there is no effect. Description of Posting Error (1) Difference between Debit and (2) Column with the (3) Identify Account(s) Incorrectly Stated (4) Amount of account over- or understatement Credit Columns Larger Total a. $1,720 debit to Rent Expense is posted as a $1,270 debit. $ 450 Credit Rent Expense Rent Expense is understated by $450 b. $3,440 credit to Cash is posted twice as two credits to Cash. c. $1,570 debit to Prepaid Insurance is posted as a debit to Insurance Expense.

Posting errors are identified in the following table. In column (1), enter the amount of the difference between the two trial balance columns (debit and credit) due to the error. In column (2), identify the trial balance column (debit or credit) with the larger amount if they are not equal. In column (3), identify the account(s) affected by the error. In column (4), indicate the amount by which the account(s) in column (3) is under- or overstated. Item (a) is completed as an example. Note: Select "None" if there is no effect. Description of Posting Error (1) Difference between Debit and (2) Column with the (3) Identify Account(s) Incorrectly Stated (4) Amount of account over- or understatement Credit Columns Larger Total a. $1,720 debit to Rent Expense is posted as a $1,270 debit. $ 450 Credit Rent Expense Rent Expense is understated by $450 b. $3,440 credit to Cash is posted twice as two credits to Cash. c. $1,570 debit to Prepaid Insurance is posted as a debit to Insurance Expense.

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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