Some of the Following Errors Would Cause the Debit and Credit

question 10

Essay

Some of the following errors would cause the debit and credit columns of the trial balance to have unequal totals. For each of the four cases, state whether the error would cause unequal totals in the trial balance. If the error causes unequal totals, indicate the amount of difference between the columns and state whether the debit or credit is larger. Each case is to be considered independently of the others.
1. A collection on account of $400 was journalized and posted as a debit to Cash $400 and a credit to Service Revenue $400.
2. A $950 purchase of supplies on account was recorded as a debit of $950 to Equipment and a credit of $950 to Accounts Payable.
3. A purchase of equipment for $3,500 on account was not recorded.
4. A $270 receipt on account was recorded as a $720 debit to Cash and a $270 credit to Accounts Receivable.

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Definitions:

Consumer Surplus

The difference between what consumers are willing to pay for a good or service versus what they actually pay.

Negotiated Price

The outcome of a bargaining process between two or more parties, where the final price of a good or service is agreed upon.

Cooperation

A process whereby individuals or entities work together towards common goals, often resulting in mutual benefit.

Strategies

Carefully devised plans or methods aimed at achieving specific long-term objectives or solving problems.