The bookkeeper for Fred Kelley’s dance studio made the following errors in journalizing and posting.
1. A credit to Supplies of $600 was omitted.
2. A debit posting of $300 to Accounts Payable was inadvertently debited to Accounts Receivable.
3. A purchase of supplies on account of $450 was debited to Supplies for $540 and credited to Accounts Payable for $540.
4. A credit posting of $680 to Interest Payable was posted twice.
5. A debit posting to Income Taxes Payable for $250 and a credit posting to Cash for $250 were made twice.
6. A debit posting for $1,200 of Dividends was inadvertently posted to Salaries and
Wages Expense instead.
7. A credit to Service Revenue for $450 was inadvertently posted as a debit to Service Revenue.
8. A credit to Accounts Receivable of $250 was credited to Accounts Payable.
Instructions
For each error, indicate
(a) Whether the trial balance will balance;
(b) The amount of the difference if the trial balance will not balance; and
(c) 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 anexample.
