Question

In: Accounting

pixel copies recorded a cash collection on account by debiting cash and crediting accounts payable. what...

pixel copies recorded a cash collection on account by debiting cash and crediting accounts payable. what will the trial balance show for this error?
A. cash is overstated
B. The trial balance will not balance
c. Expenses are overstated
d. Liabilities are overstated

Solutions

Expert Solution

Correct Entry for recorded a cash collection on account is :-

debiting cash and crediting accounts Receivable

But Entry recorded incorrectly :-

debiting cash and crediting accounts payable

Account payable is liability which is wrongly credited instead of account receivable'

Hence Liabilities are overstated

Option D is correct


Related Solutions

list at least three expenses that would be recorded in a accounts payable?
list at least three expenses that would be recorded in a accounts payable?
Date please white general ledger : cash at bank, accounts receivable, inventory,account payable, bank loan payable,...
Date please white general ledger : cash at bank, accounts receivable, inventory,account payable, bank loan payable, Transaction description 1 Obtained a loan of $48,000 from MRMC Bank at a simple interest rate of 6% per year. The first interest payment is due at the end of August 2018 and the principal of the loan is to be repaid on 1 June 2021. 2 Sold 9 boxes of Sprearmint Gum to Sweet Tooth for $100 each, Invoice No. 201. 3 Purchased...
1. Accounts payable (a .k.a. trade accounts payable) is the account credited when goods or services...
1. Accounts payable (a .k.a. trade accounts payable) is the account credited when goods or services are purchased on open account (meaning payment has been delayed - often due in 30 days). a. Explain the following: 1.5/10, n/30 b. In the above example, what is the effective interest rate earned by taking advantage of the discount (paying before the 30 days). 2. Explain the difference between accounts Payable and notes Payable . 3. Explain the difference between an interest bearing...
Discuss the relationship between the balance in the accounts payable general ledger control account and what is found in the accounts payable subsidiary ledger.
Discuss the relationship between the balance in the accounts payable general ledger control account and what is found in the accounts payable subsidiary ledger.  
Events: 1. Recognition of revenue on account. 2. Collection of cash from accounts receivable. 3. Write-off...
Events: 1. Recognition of revenue on account. 2. Collection of cash from accounts receivable. 3. Write-off of uncollectible accounts. 4. Recognition of uncollectible accounts expense through a year-end adjusting entry. Identify the following for Events 1-4: A. The impact on the accounting equation B. If and how it affects net income C. If and how it affects cash With your answers, please explain your reasoning and how you solved the problem.
Purchases, Accounts Payable Subsidiary Account, and Accounts Payable Ledger Sterling Forest Landscaping designs and installs landscaping....
Purchases, Accounts Payable Subsidiary Account, and Accounts Payable Ledger Sterling Forest Landscaping designs and installs landscaping. The landscape designers and office staff use office supplies, while field supplies (rock, bark, etc.) are used in the actual landscaping. Purchases on account completed by Sterling Forest Landscaping during October are as follows: Oct. 2. Purchased office supplies on account from Meade Co., $3,560. 5. Purchased office equipment on account from Peach Computers Co., $5,120. 9. Purchased office supplies on account from Executive...
urchases, Accounts Payable Subsidiary Account, and Accounts Payable Ledger Sterling Forest Landscaping designs and installs landscaping....
urchases, Accounts Payable Subsidiary Account, and Accounts Payable Ledger Sterling Forest Landscaping designs and installs landscaping. The landscape designers and office staff use office supplies, while field supplies (rock, bark, etc.) are used in the actual landscaping. Purchases on account completed by Sterling Forest Landscaping during October are as follows: Oct. 2. Purchased office supplies on account from Meade Co., $400. Oct. 5. Purchased office equipment on account from Peach Computers Co., $3,980. Oct. 9. Purchased office supplies on account...
Purchases, Accounts Payable Subsidiary Account, and Accounts Payable Ledger Sterling Forest Landscaping designs and installs landscaping....
Purchases, Accounts Payable Subsidiary Account, and Accounts Payable Ledger Sterling Forest Landscaping designs and installs landscaping. The landscape designers and office staff use office supplies, while field supplies (rock, bark, etc.) are used in the actual landscaping. Purchases on account completed by Sterling Forest Landscaping during October are as follows: Oct. 2. Purchased office supplies on account from Meade Co., $400. Oct. 5. Purchased office equipment on account from Peach Computers Co., $3,980. Oct. 9. Purchased office supplies on account...
Purchases, Accounts Payable Subsidiary Account, and Accounts Payable Ledger Sterling Forest Landscaping designs and installs landscaping....
Purchases, Accounts Payable Subsidiary Account, and Accounts Payable Ledger Sterling Forest Landscaping designs and installs landscaping. The landscape designers and office staff use office supplies, while field supplies (rock, bark, etc.) are used in the actual landscaping. Purchases on account completed by Sterling Forest Landscaping during October are as follows: Oct. 2. Purchased office supplies on account from Meade Co., $5,200. 5. Purchased office equipment on account from Peach Computers Co., $7,480. 9. Purchased office supplies on account from Executive...
cash collections of accounts receivable will increase ____ and decrease _____ 1) accounts payable , accounts...
cash collections of accounts receivable will increase ____ and decrease _____ 1) accounts payable , accounts receivable 2) accounts receivable, accounts payable 3) cash, accounts receivable 4) cast, accounts payable when developring cost functions , which of the following is false 1) the cost funtion must be believable 2) the cost function does not have to be reliable 3) personal observations of cost and activities provide the best evidence of a plausible relationship between a cost and its cost driver...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT