The bookkeeper for Biggio Corporation made these errors in journalizing and post

Question

The bookkeeper for Biggio Corporation made these errors in journalizing and posting.

1. A credit posting of $400 to Accounts Receivable was omitted.
2. A debit posting of $750 for Prepaid Insurance was debited to Insurance Expense.
3. A collection on account 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 Taxes Payable was made twice.
5. A cash purchase of supplies for $250 was journalized and posted as a debit to Supplies $25 and a credit to Cash $25.
6. A debit of $395 to Advertising Expense was posted as $359.


For each error, indicate (a) whether the trial balance will balance; if the trial balance will not balance, indicate (b) the amount of the difference, 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 an example


(a) (b) (c)
Error In Balance Difference Larger Column
1. No $400 Debit

Explanation / Answer

6.
(a) Trial will not balance as we have made less entry;
(b) difference= 395-359=36$;
(c) credit side will be larger

5.
(a) It will not balance because we used 250$ but just entered 25$;
(b) difference= 250-25=225;
(c) debit side will be higher

4.
(a) It will not balance;
(b) $300 will be extra on credit side;
(c) credit side will have large total

3.
(a) Trial will balance because we are putting 100$ on both sides;
(b) there will be no difference;
(c) credit=debit

2.
(a) Trial will balance since we have just entered it in wrong place in Debit side;
(b) there will be no difference;
(c) credit= debit

1.
(a) Since we omitted the Accounts receivable it will not balance ;
(b) there will be difference of $400;
(c) credit posting is missing so Debit side will be larger total

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