ACCT 201 Principles of Financial Accounting Practice Exam - Chapter 2 Accounting Information System Dr. Fred Barbee Solution to Short-Problem #2

Short Problem #2

For each of the following errors, indicate on the table below the amount by which the trial balance will be out of balance and which trial balance column (debit or credit) will have the larger total as a result of the error.

a.	$100 debit to Cash was debited to the cash account twice.
b.	$1,900 credit to Sales was posted as a $190 credit.
c.	$5,000 debit to Office Equipment was debited to Office Supplies.
d.	$625 debit to Prepaid Insurance was posted as a $62.50 debit.
e.	$520 credit to Accounts Payable was not posted.

Error	Amount Out of Balance	Column Having Larger Total
a.	$100	Debit
b.	$1,710	Debit
c.	---	---
d.	$562.50	Credit
e.	$520	Debit