The following errors were made in preparing a trial balance of DK VENTURES: The P7,000 debit balance of nventory was omitted. • The P1,200 balance of prepaid insurance was listed as a credit The P1,000 balance of salaries expense was listed as utilities expense The P2,500 balance of service revenue was credited twice • Income tax expense of P300 was debited as P3000 The debit and credit totals of the trial balance would differ by? Blank 1

The following errors were made in preparing a trial balance of DK VENTURES: The P7,000 debit balance of nventory was omitted. • The P1,200 balance of prepaid insurance was listed as a credit The P1,000 balance of salaries expense was listed as utilities expense The P2,500 balance of service revenue was credited twice • Income tax expense of P300 was debited as P3000 The debit and credit totals of the trial balance would differ by? Blank 1

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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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The following errors were made in preparing a trial balance of DK VENTURES:
The P7,000 debit balance of nventory was omitted.
The P1,200 balance of prepaid insurance was listed as a credit
The P1,000 balance of salaries expense was listed as utilities expense
The P2,500 balance of service revenue was credited twice
Income tax expense of P300 was debited as P3000
The debit and credit totals of the trial balance would differ by? Blank 1

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Bidiyah Co. estimates that RO 6,500 of its accounts receivable to be uncollectible. If Allowance for Doubtful Accounts has a RO 1,200 debit balance, the company should record a: Select one: O a. None of the answers are correct O b. debit to Bad Debt Expense for RO 5,300. O c credit to Allowance for Doubtful Accounts for RO 6,500. Od. debit to Allowance for Doubtful Accounts for RO 5,300. O e. credit to Bad Debt Expense for RO 7,700.
A trial balance has total debits of $20,000 and total credits of $24,500. Which one of the following errors would create this imbalance? Explain. a. A $2,250 debit to Utilities Expense in a journal entry was incorrectly posted to the ledger as a $2,250 credit, leaving the Utilities Expense account with a $3,000 debit balance. b. A $4,500 debit to Salaries Expense in a journal entry was incorrectly posted to the ledger as a $4,500 credit, leaving the Salaries Expense account with a $750 debit balance. c. A $2,250 credit to Consulting Fees Earned (Revenues) in a journal entry was incorrectly posted to the ledger as a $2,250 debit, leaving the Consulting Fees Earned account with a $6,300 credit balance. d. A $2,250 debit posting to Accounts Receivable was posted mistakenly to Land. e. A $4,500 debit posting to Equipment was posted mistakenly to Cash. f. An entry debiting Cash and crediting Accounts Payable for $4,500 was mistakenly not posted.
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