The Bookkeeper for Panda Bear Yard Service Made a Number

question 99

Essay

The bookkeeper for Panda Bear Yard Service made a number of errors in journalizing and posting as described below:
1. A debit posting to accounts receivable for $500 was omitted.
2. A payment of accounts payable for $600 was credited to cash and debited to accounts receivable.
3. A credit to accounts receivable for $950 was posted as $95.
4. A cash purchase of equipment for $893 was journalized as a debit to equipment and a credit to notes payable. The credit posting was made for $839 while the debit posting was made for $893.
5. A debit posting of $400 for purchase of supplies was credited to supplies.
6. A debit to maintenance and repairs expense for $451 was posted as $415.
7. A debit posting for salaries and wages expense for $900 was made twice.
8. A cash purchase of supplies for $700 was journalized and posted as a debit to supplies for $70 and a credit to cash for $70.
Instructions
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. $$\begin{array} { c c c c } & ( \mathrm { A } )& ( \mathrm { B } ) & ( \mathrm { C } ) \\ \underline{\text { Error } }& \underline{\text { In Balance } }& \underline{\text { Difference }} & \underline{\text { Larger Column } }\\1&\text { No } &\$500&\text { Credit }\end{array}$$

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Definitions:

Average Wage

The mean earnings of workers in a specific job, industry, or region, often used to compare economic wellbeing.

Dispersed

Spread out or scattered, not concentrated in one area.

Data Distribution

The way in which data points are spread or dispersed across values in a dataset.

Skewness

A measure of the asymmetry of the probability distribution of a real-valued random variable; indicates how the tail on one side of the distribution compares to the tail on the other side.