Please explain why rent expense should be debited twice on trial balance The trial balance for Finders Company does not balanceand the information as follows has been presented:Finders CompanyTrial BalanceFebruary 29, 2020DebitAccountCashAccounts receivableSuppliesEquipmentComputersAccounts payabieNotes payableWright, CapitalWright, DrawingService revenueCredit6,3006,00040022,30049,0002,80018,50050,0004,0004,100Salary ExpenseRent expenseAdvertising expenseUtilities expenseTotal1,40080090080091,90075,400The following errors were detected:1. The cash balance is overstated by$5,000.2. Rent expense of $340 was erroneously posted as acredit rather than a debit.3. A $6,800 credit to Service revenue was notposted.4. A $400 debit to Accounts receivable was posted as$40.5. The balance of Utilities expense is understated by$70.6. A $900 purchase of supplies on account was neitherjournalized nor posted.7. Equipment should be $16,490.

Rent is an expense and should be debited when journalized. Rent expense was erroneously credited…

Answered: The trial balance for Finders Company…

The trial balance for Finders Company does not bala and the information as follows has been presented: Finders Company Trial Balance

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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Question

Please explain why rent expense should be debited twice on trial balance

The trial balance for Finders Company does not balance
and the information as follows has been presented:
Finders Company
Trial Balance
February 29, 2020
Debit
Account
Cash
Accounts receivable
Supplies
Equipment
Computers
Accounts payabie
Notes payable
Wright, Capital
Wright, Drawing
Service revenue
Credit
6,300
6,000
400
22,300
49,000
2,800
18,500
50,000
4,000
4,100
Salary Expense
Rent expense
Advertising expense
Utilities expense
Total
1,400
800
900
800
91,900
75,400
The following errors were detected:
1. The cash balance is overstated by
$5,000.
2. Rent expense of $340 was erroneously posted as a
credit rather than a debit.
3. A $6,800 credit to Service revenue was not
posted.
4. A $400 debit to Accounts receivable was posted as
$40.
5. The balance of Utilities expense is understated by
$70.
6. A $900 purchase of supplies on account was neither
journalized nor posted.
7. Equipment should be $16,490.

Definition Definition Statement that shows the ending balance of all the ledger accounts of a firm at the end of the accounting period. The trial balance is prepared after all the entries have been posted to the ledger accounts and assists in preparing the final accounts of a firm.

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