Question

Question 4 (of 8) The following information applies to the questions displayed below.) 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. Answer each of the following questions and compute the dollar amount of any misstatement. 4. T. 3.00 points Part (a through d): For each of the following statements: 1. Select the appropriate choice from the 'Account Status' column 2. In cases where the amount is understated or overstated, use the 'Amount column to fill in the amount by which the account or trial balance total is understated or overstated. (Enter the amounts understated with a minus sign.) Statements a. The debit column total of the trial balance b. The credit column total of thetrial balance c. The balance of the automobiles account in the trial balance d. The balance of the accounts payable account in the trial balance Account Status Overstated Understated Correctly stated Understated Amount $ 37,100 $ 37.100 $ 18,950 $ 37,900

Answer 1

FCDDF000 (Autosaved) (Autosaved) - Microsoft Excel - 9 X Page Layout Formulas Data Review View Con = Home Insert * Cut La Copy Paste Format Painter Clipboard A19 = Comic Sans MS - 11 - AA B I U - - - A = = E = Wrap Text Merge & Center - *- } Insert Delete Format AutoSum B E General 9 % , Number 8:29 o Conditional Format Formatting as Table Styles Cell Styles 2 Clear Sort & Find & Filter Select Editing Alignment Cells Font fic E F G H J K L M a Statements The Debit column total of trial balance The credit column total of trial balance The balance of automobile account in trial balance The balance of accounts payable account in trial balance Account Status' Amount Correctly stated $ Understated $ 37,900.00 Correctly stated $ Understated $ 37,900.00 d Explanation a. The debit column is correctly stated because the erroneous debit (to Accounts Payable) is deducted from an account with a larger assumed) credit balance. b. The credit column is understated by $37,900 because Accounts Payable was debited - it should have been credited. c. The automobiles account balance is correctly stated. d. The Accounts Payable account balance is understated by $37,900. It should have been increased (credited) by $18,950 but the posting error decreased (debited) it by $18,950. 22 K Sheet201 Sheet202 Sheet204 Sheet205 Sheet206 Sheet208 Sheet210 Sheet214 Sheet213 Februar M Ready Average: 18950 Count: 24 Sum: 75800 BOU 100% 0 O Type here to search A A a Ax 03:14 27-02-2020 o