Assume that when a purchase of supplies of $3,100 for cash was recorded, both the debit and the credit were journalized and posted as $1,300

Accounting Jan 22, 2021

Assume that when a purchase of supplies of $3,100 for cash was recorded, both the debit and the credit were journalized and posted as $1,300.
(a) Would this error cause the trial balance to be out of balance?
(b) Would the trial balance be out of balance if the $3,100 entry had been journalized correctly but the credit to Cash had been posted as $1,300?

Expert Solution

a)No. Because the same error occurred on both the debit side and the credit side of the trial balance, the trial balance would not be out of balance.

b)Yes. The trial balance would not balance. The error would cause the debit total of the trial balance to exceed the credit total by $1,800.

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote