Question

Effect of Errors on Trial Balance The following errors occurred in posting from a two-column journal: 1. A credit of $8,090 to Accounts Payable was not posted. 2. An entry debiting Accounts Receivable and crediting Fees Earned for $22,300 was not posted. 3. A debit of $1,240 to Accounts Payable was posted as a credit. 4. A debit of $1,480 to Supplies was posted twice. 5. A debit of $2,210 to Cash was posted to Miscellaneous Expense. 6. A credit of $160 to Cash was posted as $610. 7. A debit of $3,960 to Wages Expense was posted as $3,690. Considering each case individually i.e., assuming that no other errors had occurred): (a) Indicate by "yes" or "no" whether the trial balance would be out of balance. (b) If the answer to (a) is "yes", indicate the amount by which the trial balance totals would differ. (c) Indicate whether the debit or credit column of the trial balance would have the larger total. If "no", enter "0" in the difference column and select "neither" from the drop box under "Larger Total". Enter all amounts as positive numbers. Answers should be presented in the following form, with error (1) given as an example: Error Out of balance Difference Larger Total Debit 1. Yes $8,090 2. $ 3. $ 4. $ 5. 6. 7 $

Answer 1

Error	Out of Balance	Difference	Larger Total	Explanation
1	Yes		8,090	Debit		Accounts payable have a credit balance not posted
2	No		0	NA		The Whole transaction of fees earned is not recorded
3	Yes		2,480	Credit		Credit side will be higher by double the amount.
4	Yes		1,480	Debit		Debit side of Supplies recorded twice.
5	No		0	NA		No effect as posting of one account is posted to another
6	Yes		450	Credit		Credit side is posted with higher amount by difference
7	YEs		270	Credit		Debit side is posted with lower amount.