Question

Which of the following errors would cause the adjusted trial balance to be unequal? a. The adjustment for prepaid insurance was omitted. b. The adjustment for unearned revenue was omitted. c. The adjustment for depreciation of $3,545 was journalized as debit to Depreciation Expense for $3,454 and a credit to Accumulated Depreciation of $3,545. d. The adjustment for accrued fees of $16,340 was journalized as a debit to Accounts Payable for $16,340 and a credit to Fees Earned of $16,340.

Answer 1

Answer: Option (C) is correct.

Explanation:

There is a adjustment entry for depreciation of $3,545 but the amount that is debited as depreciation expense is different from the amount that is credited as accumulated depreciation.

Depreciation Expense A/C     Dr.     $3,454

To Accumulated Depreciation                          $3,545

This will lead to an unequal adjusted trial balance.

Option 'A' and 'B' has no effect on the adjusted trail balance to be unequal because whole transaction is omitted.

Option 'D' also has no effect on adjusted trail balance because the debit and credit amount will still match.