Effect of Errors on Adjusted Trial Balance For each of the following errors, con

Question

Effect of Errors on Adjusted Trial Balance For each of the following errors, considered individually, indicate whether the error would cause the adjusted trial balance totals to be unequal.

If the error would cause the adjusted trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much. a.

The adjustment for accrued wages of $4,070 was journalized as a debit to Wages Expense for $4,070 and a credit to Accounts Payable for $4,070. Enter the difference between the debit and credit totals. If the totals are equal, enter a zero. $ b. The entry for $1,360 of supplies used during the period was journalized as a debit to Supplies Expense of $1,360 and a credit to Supplies of $1,630. Enter the difference between the debit and credit totals. If the totals are equal, enter a zero.

Explanation / Answer

a.

The adjustment for accrued wages of $4,070 was journalized as a debit to Wages Expense for $4,070 and a credit to Accounts Payable for $4,070

So answer is Total amount are equal and difference 0

b. The entry for $1,360 of supplies used during the period was journalized as a debit to Supplies Expense of $1,360 and a credit to Supplies of $1,630

So answer is Credit higher by $270

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