Principles of Financial Accounting.
22nd Edition
ISBN: 9780077632892
Author: John J. Wild
Publisher: McGraw Hill
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Textbook Question
Chapter 2, Problem 8QS
Identifying a posting error
A
- a. A $2,250 debit to Utilities Expense in a
journal entry was incorrectly posted to the ledger as a $2,250 credit, leaving the Utilities Expense account with a $3,000 debit balance. - b. A $4,500 debit to Salaries Expense in a journal entry was incorrectly posted to the ledger as a $4,500 credit, leaving the Salaries Expense account with a $750 debit balance.
- c. A $2,250 credit to Consulting Fees Earned (Revenues) in a journal entry was incorrectly posted to the ledger as a $2,250 debit, leaving the Consulting Fees Earned account with a $6,300 credit balance.
- d. A $2,250 debit posting to Accounts Receivable was posted mistakenly to Land.
- e. A $4,500 debit posting to Equipment was posted mistakenly to Cash.
- f. An entry debiting Cash and crediting Accounts Payable for $4,500 was mistakenly not posted.
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Students have asked these similar questions
While in the process of posting from the journal to the ledger a company failed to post a $500 credit to Accounts Receivable. The effect of this error will be that
Group of answer choices
A. Accounts Receivable will be understated.
B. the error will overstate the debits listed in the journal.
C. the trial balance will not balance.
D. the total credits in the trial balance will be larger than the total debits.
2. MC.03.002
A book of original entry is known as a
a. ledger account.
b. trial balance.
c. general ledger.
d. Taccount.
e. Journal.
3.MC.03.003
An accountant wanting to know the balance of a particular account would refer to the
a. source document.
b. chart of accounts.
c. journal.
d. book of original entry.
e. ledger.
4.MC.03.004
The process of subtotalling both sides of an account and recording the amount on that side is known as
a. Journalizing.
b. footing.
c. balancing the accounts.
d. taking a trial balance.
e. posting.
5.MC.03.005
If the number of an account is 211, this probably means that the account is the first account in the
a. Liabilities section.
b. Owner's Equity section.
c. Revenues section.
d. Expenses section.
e. Assets section.
6. MC.03.006
When an entry is posted, the last step in the process is
a. placing the balance of the account in either the debit or credit column in the ledger.
b. placing the account number in the Post. Ref. column of the ledger.
c. placing…
4. Complete the following chart to show the effect of errors on a trial balance
Trial balance
will not balance
Trial balance will
Debits
Credits
balance but will
greater than
greater than
not be correct
Error Situation
credits by ($) debits by ($)
(r)
A. A transaction for $500 was
journalized and posted as $50.
B. A debit of $200 to Bank was posted
to a customer's account.
c. An account with a credit balance of
$300 in the ledger was placed on the
debit side of the trial balance.
D. A Supplies balance of $500 was not
placed on the trial balance.
E. A credit of $200 was posted twice.
F. An entire journal entry for $350 was
not posted.
G. The Revenue account balance of
$42 000 was listed on the trial
Page 4
Chapter 2 Solutions
Principles of Financial Accounting.
Ch. 2 - Amalia Company received its utility bill for the...Ch. 2 - On May 1, Mattingly Lawn Service collected 2,500...Ch. 2 - Prob. 3MCQCh. 2 - A trial balance prepared at year-end shows total...Ch. 2 - Prob. 5MCQCh. 2 - Prob. 1DQCh. 2 - What is the difference between a note payable and...Ch. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Are debits or credits typically listed first in...
Ch. 2 - Prob. 6DQCh. 2 - Prob. 7DQCh. 2 - Prob. 8DQCh. 2 - Prob. 9DQCh. 2 - Prob. 10DQCh. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 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. 17DQCh. 2 - Prob. 18DQCh. 2 - Prob. 1QSCh. 2 - Identifying financial statement accounts C2...Ch. 2 - Prob. 3QSCh. 2 - Prob. 4QSCh. 2 - Linking debit or credit with normal balance C4...Ch. 2 - Analyzing transactions and preparing journal...Ch. 2 - Prob. 7QSCh. 2 - Identifying a posting error A trial balance has...Ch. 2 - Prob. 9QSCh. 2 - Prob. 10QSCh. 2 - Prob. 1ECh. 2 - Prob. 2ECh. 2 - Prob. 3ECh. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Prob. 6ECh. 2 - Prob. 7ECh. 2 - Prob. 8ECh. 2 - Prob. 9ECh. 2 - Prob. 10ECh. 2 - Prob. 11ECh. 2 - Prob. 12ECh. 2 - Prob. 13ECh. 2 - Prob. 14ECh. 2 - Prob. 15ECh. 2 - Prob. 16ECh. 2 - Prob. 17ECh. 2 - Prob. 18ECh. 2 - Prob. 19ECh. 2 - Identifying effects of posting errors on the trial...Ch. 2 - Analyzing a trial balance error You are told the...Ch. 2 - Prob. 22ECh. 2 - Prob. 23ECh. 2 - Prob. 5APCh. 2 - Prob. 6APCh. 2 - Prob. 5BPCh. 2 - Prob. 6BPCh. 2 - Prob. 2SPCh. 2 - Prob. 1BTNCh. 2 - Prob. 2BTNCh. 2 - Prob. 3BTNCh. 2 - COMMUNICATING IN PRACTICE Lila Corentine is an...Ch. 2 - Prob. 5BTNCh. 2 - Prob. 7BTNCh. 2 - Prob. 8BTNCh. 2 - Prob. 10BTN
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- Posting errors are identified in the following table. In column (1), enter the amount of the difference between the two trial balance columns (debit and credit) due to the error. In column (2), identify the trial balance column (debit or credit) with the larger amount if they are not equal. In column (3), identify the account(s) affected by the error. In column (4), indicate the amount by which the account(s) in column (3) is under- or overstated. Item (a) is completed as an example. Note: Select "None" if there is no effect. Description of Posting Error a $2,720 debit to Rent Expense is posted as a $2,270 debit b. $5,440 credit to Cash is posted twice as two credits to Cash c. $2,570 debit to Prepaid Insurance is posted as a debit to Insurance Expense. d. $47,600 debit to Machinery is posted as a debit, to Accounts Payable e. $6,340 credit to Services Revenue is posted as a $634 credit. f. $1,760 debit to Store Supplies is not posted. (1) Difference between Debit and Credit Columns $…arrow_forwardPosting errors are identified in the following table. In column (1), enter the amount of the difference between the two trial balance columns (debit and credit) due to the error. In column (2), identify the trial balance column (debit or credit) with the larger amount if they are not equal. In column (3), identify the account(s) affected by the error. In column (4), indicate the amount by which the account(s) in column (3) is under- or overstated. Item (a) is completed as an example.arrow_forwardPosting errors are identified in the following table. In column (1), enter the amount of the difference between the two trial balance columns (debit and credit) due to the error. In column (2), identify the trial balance column (debit or credit) with the larger amount if they are not equal. In column (3), identify the account(s) affected by the error. In column (4), indicate the amount by which the account(s) in column (3) is under- or overstated. Item (a) is completed as an example. Note: Select "None" if there is no effect. (1) Difference between Description of Posting Error Debit and Credit Columns Larger Total (2) Column with the (3) Identify Account(s) Incorrectly Stated (4) Amount of account over- or understatement a. $1,720 debit to Rent Expense is posted as a $1,270 debit. $ 450 Credit Rent Expense Rent Expense is understated by $450 b. $3,440 credit to Cash is posted twice as two credits to Cash. c. $1,570 debit to Prepaid Insurance is posted as a debit to Insurance Expense.…arrow_forward
- Posting errors are identified in the following table. In column (1), enter the amount of the difference between the two trial balance columns (debit and credit) due to the error. In column (2), identify the trial balance column (debit or credit) with the larger amount if they are not equal. In column (3), identify the account(s) affected by the error. In column (4), indicate the amount by which the account(s) in column (3) is under- or overstated. Item (a) is completed as an example. (Select "None" if there is no effect.)arrow_forwardWhich of the following errors will be detected by a trial balance? a. Posting a credit to Sales instead of the Accounts Payable b. Incorrecty computing the balance of the cash account c. Not journalizing a complete sales transaction d. Forgetting to post a complete purchase transactionarrow_forwardSelect the best answer for the question. 10. A trial balance indicates that the debit total exceeds the credit total by $63. Which of the following errors is the most probable source of the discrepancy? A. An asset with a balance of $63 was mistakenly entered in the ledger as a credit for that amount instead of a debit B. An asset with a balance of $670 was mistakenly entered in the ledger as a $607 debit OC. A liability with a balance of $63 was mistakenly entered in the ledger as a debit for that amount, instead of a credit OD. A liability with a balance of $970 was mistakenly entered in the ledger as a $907 credit O Mark for review (Will be highlighted on the review page) Previous Question Next Question >>arrow_forward
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- A trial balance will disclose that an error has been made in Entering an amount on the wrong side of account Computing the interest expense on note payable Posting an amount to the wrong ledger account Double-posting two both sides of entry with explanation pleasearrow_forwardIf debits do not equal credits, the first step to find the error is to O Call your manager and ask for advice. O Add the debit and credit columns again O Review the journal entries for errors Make correcting entries rather than adjusting entriesarrow_forwardWhich of the folloving errors cannot be detected by the trial balance? a Incorrect accounts were used to record a given transaction. b. Incorrect amounts were recorded for a given transaction C. A journal entry was posted twice. d. A journal entry was not posted to the general ledger, O a All of the Letters O b C&D A &B B&Carrow_forward
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