Effect of errors in journalizing and posting on trial balance.
The bookkeeper for Shirley Temple's dance studio made the following errors in journalizing and posting.
1. A credit to Supplies of $600 was omitted.
2. A debit posting of $300 to Accounts Payable was inadvertently debited to Accounts Receivable.
3. A purchase of supplies on account of $450 was debited to Supplies for $540 and credited to Accounts Payable for $540.
4. A credit posting of $250 to Wages Payable was posted twice.
5. A debit posting to Wages Payable for $250 and a credit posting to Cash for $250 were made twice.
6. A debit posting for $1,200 of Dividends was inadvertently posted to Travel Expense instead.
7. A credit to Service Revenue for $350 was inadvertently posted as a debit to Service Revenue.
8. A credit to Accounts Receivable of $250 was credited to Accounts Payable.
Instructions
For each error, indicate (a) whether the trial balance will balance; (b) the amount of the difference if the trial balance will not balance; and (c) the trial balance column that will have the larger total. Consider each error separately. Use the following form, in which error 1 is given as an example.
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(a)
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(b)
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(c)
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Error
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In Balance
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Difference
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Larger Column
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1
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No
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$600
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Debit
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