24th Edition

ISBN: 9781260158601

Author: Wild

Publisher: MCG

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Chapter 2, Problem 21E

Analyzing a trial balance error

You are told the column totals in a trial balance are not equal. After careful analysis, you discover only one error. Specifically, a correctly journalized credit purchase of an automobile for $18,950 is posted from the journal to the ledger with an $18,950 debit to Automobiles and another $18,950 debit to Accounts Payable. The Automobiles account has a debit balance of $37,100 on the trial balance. (1) Answer each of the following questions and (2) compute the dollar amount of any misstatement for parts a through d.

a. Is the Debit column total of the trial balance overstated, understated, or correctly stated?
b. Is the Credit column total of the trial balance overstated, understated, or correctly stated?
c. Is the Automobiles account balance overstated, understated, or correctly stated in the trial balance?
d. Is the Accounts Payable account balance overstated, understated, or correctly stated in the trial balance?
e. If the Debit column total of the trial balance is $200,000 before correcting the error, what is the total of the Credit column before correction?

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Chapter 2, Problem 20E

Chapter 2, Problem 22E

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Chapter 2 Solutions

Principles of Financial Accounting.

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Ch. 2 - Prob. 6DQ Ch. 2 - Prob. 7DQ Ch. 2 - Prob. 8DQ Ch. 2 - Prob. 9DQ Ch. 2 - Prob. 10DQ Ch. 2 - Prob. 11DQ Ch. 2 - Prob. 12DQ Ch. 2 - Prob. 13DQ Ch. 2 - Define (a) assets, (b) liabilities, (c) equity,...Ch. 2 - Which financial statement is sometimes called the...Ch. 2 - APPLE Review the Apple balance sheet in Appendix...Ch. 2 - Prob. 17DQ Ch. 2 - Prob. 18DQ Ch. 2 - Prob. 1QS Ch. 2 - Identifying financial statement accounts C2...Ch. 2 - Prob. 3QS Ch. 2 - Prob. 4QS Ch. 2 - Linking debit or credit with normal balance C4...Ch. 2 - Analyzing transactions and preparing journal...Ch. 2 - Prob. 7QS Ch. 2 - Identifying a posting error A trial balance has...Ch. 2 - Prob. 9QS Ch. 2 - Prob. 10QS Ch. 2 - Prob. 11QS Ch. 2 - Preparing an income statement P3 Liu Zhang...Ch. 2 - Prob. 13QS Ch. 2 - Preparing a balance sheet P3 Use the information...Ch. 2 - Prob. 15QS Ch. 2 - Prob. 1E Ch. 2 - Identifying and classifying accounts Enter the...Ch. 2 - Identifying a ledger and chart of accounts C3...Ch. 2 - Prob. 4E Ch. 2 - Analyzing effects of a compound entry A1 Groro Co....Ch. 2 - Prob. 6E Ch. 2 - Prob. 7E Ch. 2 - Preparing T-accounts (ledger) and a trial balance...Ch. 2 - Prob. 9E Ch. 2 - Prob. 10E Ch. 2 - Prob. 11E Ch. 2 - Analyzing and journalizing transactions involving...Ch. 2 - Prob. 13E Ch. 2 - Prob. 14E Ch. 2 - Prob. 15E Ch. 2 - Prob. 16E Ch. 2 - Prob. 17E Ch. 2 - Prob. 18E Ch. 2 - Prob. 19E Ch. 2 - Identifying effects of posting errors on the trial...Ch. 2 - Analyzing a trial balance error You are told the...Ch. 2 - Calculating and interpreting the debt ratio A2...Ch. 2 - Prob. 23E Ch. 2 - Prob. 5AP Ch. 2 - Prob. 6AP Ch. 2 - Prob. 7AP Ch. 2 - The accounting records of Tama Co. show the...Ch. 2 - Prob. 6BP Ch. 2 - Prob. 7BP Ch. 2 - Prob. 1AA Ch. 2 - Prob. 2AA Ch. 2 - GLOBAL ANALYSIS A2 Key comparative figures for...Ch. 2 - Prob. 1BTN Ch. 2 - COMMUNICATING IN PRACTICE Lila Corentine is an...Ch. 2 - Prob. 3BTN Ch. 2 - Prob. 5BTN Ch. 2 - Prob. 6BTN

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Solution Summary: The author explains whether the given statement is overstated or understates or correctly stated.

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Chapter 2 Solutions