Question

The accountant for Smistad Guitar Repair Company made a number of errors in journalizing and posting, as described below: 1. A credit posting of $400 to Accounts Payable was omitted. 2. A debit posting of $705 for Rent Expense was debited to Prepaid Rent. 3. A collection on account of $140 was journalized and posted as a $140 debit to Cash and a $140 credit to Service Revenue. 4. A credit posting of $445 to Accounts Payable was made twice. 5. A cash purchase of supplies for $270 was journalized and posted as a $27 debit to Supplies and a $27 credit to cash. 6. A debit of $497 to Advertising Expense was posted as $479. 7. A journal entry for the payment of $1,240 of salaries expense was posted twice.

Will the trial balance be in balance? Error In Balance 1. YesNo 2. YesNo 3. YesNo 4. YesNo 5. YesNo 6. YesNo 7. YesNo

What is the amount of the error if the trial balance will not balance? Error Difference 1. $ 2. $ 3. $ 4. $ 5. $ 6. $ 7. $

Which trial balance column will have the larger total? Error Larger column 1. DebitCreditNone 2. DebitCreditNone 3. NoneCreditDebit 4. DebitCreditNone 5. CreditNoneDebit 6. NoneCreditDebit 7. CreditNoneDebit

Which account or accounts have an incorrect balance? Error Incorrect Accounts 1. 2. 3. 4. 5. 6. 7.

Answer 1

Sr No.	Transaction	In Balance	ledger coloum	Difference amount	Accounts
1	A credit posting of $400 to Accounts Payable was omitted.	No	Credit	$400	Accounts Payable
2	A debit posting of $705 for Rent Expense was debited to Prepaid Rent.	Yes	-	-	-
3	A collection on account of $140 was journalized and posted as a $140 debit to Cash and a $140 credit to Service Revenue.	No	Credit	$140	Sales Revenue
4	A credit posting of $445 to Accounts Payable was made twice.	No	Credit	445	Accounts Payable
5	A cash purchase of supplies for $270 was journalized and posted as a $27 debit to Supplies and a $27 credit to cash	Yes	-	-	-
6	A debit of $497 to Advertising Expense was posted as $479.	No	Debit	($497-$479)=18	Advertising expenses
7	A journal entry for the payment of $1,240 of salaries expense was posted twice.	Yes	-	-	-

Explanation of 2 transactions:- Prepaid rent and rent expenses both have debit balace and they will Balance each other in trail Balance.

Explanation of 5 transaction:- Supplies and cash both have debit balace and they will Balance each other in trail balance.

Explanation of 7 transaction:- Salaries expense and cash both are debit balance and they will deducted by same amount twice .the trail Balance will remain Balanced