Question

Effect of Errors on Trial Balance

The following errors occurred in posting from a two-column journal:

1. A credit of $8,440 to Accounts Payable was not posted.
2. An entry debiting Accounts Receivable and crediting Fees Earned for $22,200 was not posted.
3. A debit of $1,060 to Accounts Payable was posted as a credit.
4. A debit of $1,610 to Supplies was posted twice.
5. A debit of $2,290 to Cash was posted to Miscellaneous Expense.
6. A credit of $460 to Cash was posted as $640.
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
1.	Yes	$8,440	Debit
2.	No	$	Neither
3.	Yes	$	Credit
4.	Yes	$	Debit
5.	No	$	Neither
6.	Yes	$	Credit
7.	Yes	$	Credit

Answer 1

Solution

Error	Out of balance	Difference	Larger Total
1	Yes	$8,440.00	Debit
2	No		Neither
3	Yes	$2,120.00*	Credit
4	Yes	$1,610.00	Debit
5	No	$          -	Neither
6	Yes	$   180.00	Credit
7	Yes	$ 270.00	Credit

*1060 for wrong credit +1060 for short debit.