Karen Brown, a Student in Your Class, Is Not Sure

question 151

Essay

Karen Brown, a student in your class, is not sure the effect of the following unrelated situations would have on the accuracy of the financial statements. Identify the account(s) that are affected and if the trial balance would balance.
(a) Equipment was purchased for $1,500 cash. The debit was recorded properly, but the credit was omitted.
(b) A debit to cash for $69 was posted as $96; the credit was posted correctly.
(c) A purchase of supplies on account for $300 was posted as a debit to equipment and a credit to cash.

---

Definitions:

Hypotheses

Tentative explanations or predictions that can be tested through empirical research and observation.

Ethics Code

A set of guidelines designed to help professionals conduct business honestly and with integrity.

Informed Consent

A process by which a fully informed person can participate in choices about their health care or participation in research after understanding the risks, benefits, and alternatives involved.

Personal Information

Information that identifies or can be used to identify, contact, or locate the person to whom such information pertains.