1. The bookkeeper For Brooks Equipment Repair made a number of
errors in journalizing and posting, as described below.
1. A credit posting of $450 to Account Receivable was omitted.
2. A credit posting of $750 for Prepaid Insurance was debited to Insurance Expense.
3. A collection from a customer of $ 100 in payment of it account owed was journalized and posted as debit to cash $ 100.
4. A credit posting of $300 to Property Taxes payable was made twice.
5. A cash purchase of supplies for $ 250 was journalized and posted as a debit to Supplies $ 25 and a credit to Cash $ 25.
6. A debit of $ 25 to Advertising Expense was posted as $ 552.
Instructions. For each error.
(a). Indicate whether the trial balance will balance
(b). If the trial balance will not balance, indicate the amount of the difference.
(c). Indicate 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.
Error. ( 1) (a). In Balance. ( No). (b). Difference. ( $450). (c). Larger Column. ( debit).
1. A credit posting of $450 to Account Receivable was omitted.
2. A credit posting of $750 for Prepaid Insurance was debited to Insurance Expense.
3. A collection from a customer of $ 100 in payment of it account owed was journalized and posted as debit to cash $ 100.
4. A credit posting of $300 to Property Taxes payable was made twice.
5. A cash purchase of supplies for $ 250 was journalized and posted as a debit to Supplies $ 25 and a credit to Cash $ 25.
6. A debit of $ 25 to Advertising Expense was posted as $ 552.
Instructions. For each error.
(a). Indicate whether the trial balance will balance
(b). If the trial balance will not balance, indicate the amount of the difference.
(c). Indicate 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.
Error. ( 1) (a). In Balance. ( No). (b). Difference. ( $450). (c). Larger Column. ( debit).
