Asked by Tiffany Riggs-Kredit on Jun 15, 2024
Verified
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 total to be unequal, indicate whether the debit or credit total is higher and by how much.a)The adjustment for unearned fees of $3,260 was journalized as a debit to Accounts Payable for $3,260 and a credit to Fees Earned of $3,260.b)The adjustment for supplies expense of $425 was journalized as a debit to Supplies Expense for $542 and a credit to Supplies for $425.
Unearned Fees
Income received by a business for which the services have not yet been performed or delivered.
Adjusted Trial Balance
A listing of all company accounts that will appear in the financial statements after adjusting entries have been made.
Supplies Expense
Costs incurred for supplies used in the operations of a business.
- Prepare and understand the adjusted trial balance.
Verified Answer
CS
Charon StevenJun 18, 2024
Final Answer :
a)The trial balance totals will still be equal, but the balances of Unearned Fees and Accounts Payable will be incorrect as the debit should have been made to Unearned Fees instead of Accounts Payable.b)The debit total exceeds the credit total by $117.
Learning Objectives
- Prepare and understand the adjusted trial balance.
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