John, a New Employee, Is Not Sure of the Effect

question 37

Essay

John, a new employee, is not sure of the effect 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 $900 cash. The debit was recorded properly, but the credit was omitted.
b. A debit to Cash for $250 was posted as $2,500; the credit was posted correctly.
c. A purchase of supplies on account for $75 was posted as a debit to Supplies and a credit to Cash.

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Definitions:

Overstaffed

A situation where there are more employees than necessary within an organization or team, often leading to inefficiency and increased costs.

Understaffed

The situation of having fewer staff members than needed to operate effectively, often leading to increased workload and stress for existing employees.

Overstaffing

The condition of having more employees than necessary, which can lead to reduced efficiency and increased costs.

Divide the Group

A strategy or process of separating a larger group into smaller groups or teams, often to facilitate focus, manageability, or diversity of thought.