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Business Accounting Fundamental Accounting Principles

Trial balance : Trial balance is a summarized statement containing all incomes, expenses, assets and liabilities of the company. The items of trial balances are to be posted either in the income statement or in the balance sheet . Total of debits must be equal to total of credit because of double effect of accounting. To Determine: The error that would create imbalance in trial balance. Solution: Following are the effects of errors on debit and credit balances of the trial balance: Option 1: It causes credit balance to increase by $4,500 due to wrong credit of utilities expense. Option 2: It causes credit balance to increase by $9,000 due to wrong credit of salaries expense. Option 3: It causes debit balance to increase by $4,500 due to wrong debit of consulting fees earned. Option 4: It does not impact credit or debit balances because both ledgers have debit balances. Option 5: It does not impact credit or debit balances because both ledgers have debit balances. Option 6: It does not impact credit and debit balances as entry in both the ledgers were not posted. Conclusion: Hence, option 1 error creates difference in debit and credit balances of trial balance worth $4,500.

Trial balance : Trial balance is a summarized statement containing all incomes, expenses, assets and liabilities of the company. The items of trial balances are to be posted either in the income statement or in the balance sheet . Total of debits must be equal to total of credit because of double effect of accounting. To Determine: The error that would create imbalance in trial balance. Solution: Following are the effects of errors on debit and credit balances of the trial balance: Option 1: It causes credit balance to increase by $4,500 due to wrong credit of utilities expense. Option 2: It causes credit balance to increase by $9,000 due to wrong credit of salaries expense. Option 3: It causes debit balance to increase by $4,500 due to wrong debit of consulting fees earned. Option 4: It does not impact credit or debit balances because both ledgers have debit balances. Option 5: It does not impact credit or debit balances because both ledgers have debit balances. Option 6: It does not impact credit and debit balances as entry in both the ledgers were not posted. Conclusion: Hence, option 1 error creates difference in debit and credit balances of trial balance worth $4,500.

Fundamental Accounting Principles

Fundamental Accounting Principles

23rd Edition

ISBN: 9781259536359

Author: John J Wild, Ken Shaw Accounting Professor, Barbara Chiappetta Fundamental Accounting Principles

Publisher: McGraw-Hill Education

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Chapter 2, Problem 7QS

Chapter 2, Problem 9QS

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Chapter 2 Solutions

Fundamental Accounting Principles

Ch. 2 - Prob. 1DQ Ch. 2 - What is the difference between a note payable and...Ch. 2 - Prob. 3DQ Ch. 2 - Prob. 4DQ Ch. 2 - Prob. 5DQ 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 - Prob. 14DQ Ch. 2 - Prob. 15DQ Ch. 2 - Prob. 16DQ Ch. 2 - Prob. 17DQ Ch. 2 - Prob. 18DQ Ch. 2 - Prob. 1QS Ch. 2 - Prob. 2QS Ch. 2 - Prob. 3QS Ch. 2 - Prob. 4QS Ch. 2 - Prob. 5QS Ch. 2 - Prob. 6QS Ch. 2 - Prob. 7QS Ch. 2 - Prob. 8QS Ch. 2 - Prob. 9QS Ch. 2 - Prob. 10QS Ch. 2 - Prob. 11QS Ch. 2 - Prob. 12QS Ch. 2 - Prob. 1E Ch. 2 - Prob. 2E Ch. 2 - Prob. 3E Ch. 2 - Prob. 4E Ch. 2 - Prob. 5E Ch. 2 - Prob. 6E Ch. 2 - Prob. 7E Ch. 2 - Prob. 8E Ch. 2 - Prob. 9E Ch. 2 - Prob. 10E Ch. 2 - Prob. 11E Ch. 2 - Prob. 12E 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 - Prob. 20E Ch. 2 - Prob. 21E Ch. 2 - Prob. 22E Ch. 2 - Prob. 23E Ch. 2 - Prob. 1APSA Ch. 2 - Prob. 2APSA Ch. 2 - Prob. 3APSA Ch. 2 - Prob. 4APSA Ch. 2 - Prob. 5APSA Ch. 2 - Prob. 6APSA Ch. 2 - Prob. 1BPSB Ch. 2 - Prob. 2BPSB Ch. 2 - Prob. 3BPSB Ch. 2 - Prob. 4BPSB Ch. 2 - Prob. 5BPSB Ch. 2 - Prob. 6BPSB Ch. 2 - Prob. 2SP Ch. 2 - Prob. 1GLP Ch. 2 - Prob. 2GLP Ch. 2 - Prob. 3GLP Ch. 2 - Prob. 4GLP Ch. 2 - Prob. 5GLP Ch. 2 - Prob. 6GLP Ch. 2 - Prob. 7GLP Ch. 2 - Prob. 8GLP Ch. 2 - Prob. 1BTN Ch. 2 - Prob. 2BTN Ch. 2 - Prob. 3BTN Ch. 2 - Prob. 4BTN Ch. 2 - Prob. 5BTN Ch. 2 - Prob. 6BTN Ch. 2 - Prob. 7BTN Ch. 2 - Prob. 8BTN Ch. 2 - Prob. 9BTN Ch. 2 - Prob. 10BTN

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