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The bookkeeper for Bullwinkle Corporation made the following errors in journalizing and posting:

1. A credit posting of $400 to accounts receivable was omitted

2. A debit positing of $750 to prepaid insurance was posted to insurance expense

3. A collection of $100 was journalized and posted as a debit to cash $100 and a credit to accounts payable $100

4. A credit posting of $300 to property tax payable was made twice

5. A cash purchase of supplies for $250 was journalized and posted as a debit to supplies $25 and credit to cash $25

6. A debit of $395 to advertising expense was posted as a debit as $359

For each error, indicate (a) whether the trial balance will not balance (b) the amount of the difference and (c) the trial balance column with the larger amount. Consider each error separately. Use the following form, in which error 1 is given as an example.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9438044

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