Question

The bookkeeper for Jeff Sobol Equipment Repair made a number of errors in journalizing and posting, as described below.

Answer 1

Answer:

Jeff Sobol Equipment Repair

a. Indication of whether the trial balance will balance with each error:

1. No.

2. Yes.

3. Yes

4. No.

5. No.

6.No.

b. The amount of the difference:

1. $485

2. $0

3. $0

4. $415

5. $225

6. $18

c. Indication of the trial balance column that have the larger total:

1. Debit

2. N/A

3. N/A

4. Credit

5. Debit

6. Credit

Explanation:

a) Data and Calculations:

1. Debit side greater by $485

2. No effect on the trial balance.

3. No effect on the trial balance

4. Credit side greater by $415

5. Debit side greater by $225 ($250 -$25)

6. Credit side greater by $18 ($475 -457)

b) The trial balance shows that the double entry system has been correctly maintained.  It does not reveal some posting errors, e.g. errors of transposition, omission, commission, and compensatory errors.  It only reveals clerical (human) errors and errors of principle (wrong application of accounting principles).