Answered: While in the process of posting from…

While in the process of posting from the journal to the ledger a company failed to post a $500 credit to Accounts Receivable. The effect of this error will be that

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter9: Auditing The Revenue Cycle.

Section: Chapter Questions

Problem 30RQSC

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Question

While in the process of posting from the journal to the ledger a company failed to post a $500 credit to Accounts Receivable. The effect of this error will be that

Group of answer choices

A. Accounts Receivable will be understated.

B. the error will overstate the debits listed in the journal.

C. the trial balance will not balance.

D. the total credits in the trial balance will be larger than the total debits.

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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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 a $2,720 debit to Rent Expense is posted as a $2,270 debit b. $5,440 credit to Cash is posted twice as two credits to Cash c. $2,570 debit to Prepaid Insurance is posted as a debit to Insurance Expense. d. $47,600 debit to Machinery is posted as a debit, to Accounts Payable e. $6,340 credit to Services Revenue is posted as a $634 credit. f. $1,760 debit to Store Supplies is not posted. (1) Difference between Debit and Credit Columns $…
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40. While in the process of posting from the journal to the ledger, the accountant of X Company failed to posta $50 debit to the Office Supplies account. The effect of this error will be as follows: A. The Office Supplies account balance will be overstated B. The trial balance will not balance. C. The error will overstate the debits listed in the journal. D. The total debits in the trial balance will be larger than the total credits. E. This error will not make any difference.
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Which of the following errors will be detected by a trial balance? a. Posting a credit to Sales instead of the Accounts Payable b. Incorrecty computing the balance of the cash account c. Not journalizing a complete sales transaction d. Forgetting to post a complete purchase transaction
The notes receivable is debited by the bookkeeper instead of accounts receivable. What is the effect of the error in the total assets of the entity? a. No effect b. Cannot be determined based on the given information c. Understated d. Overstated
Accounts often need to be adjusted because Select one: a. Management can't decide what they want to report. b. Many transactions affect more than one time period. c. There are never enough accounts to record all the transactions. d. There are always errors made in recording transactions.
If debits do not equal credits, the first step to find the error is to O Call your manager and ask for advice. O Add the debit and credit columns again O Review the journal entries for errors Make correcting entries rather than adjusting entries