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In: Accounting

The following errors were made in preparing a trial balance: the $1,350 balance of Inventory was...

The following errors were made in preparing a trial balance: the $1,350 balance of Inventory was omitted; the $450 balance of Prepaid Insurance was listed as a credit; and the $300 balance of Salaries Expense was listed as Utilities Expense. The debit and credit totals of the trial balance would differ by ?

The answer according to our prof is supposed to be $2,250. Please show the solution for for this answer.

Solutions

Expert Solution

Answer :-

Solution of this answer is calculated as under :-

In Trial Balance $1,350 balance of stock was ommited so Stock will be debited by $1,350

and $450 prepaid insurance is credited so, we will double the prepaid insurance means $450 * 2=$900

So difference of trial balance is $1,350 + $900 = $2250

ekkarill92 answered 2 years ago
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