Given the Following List of Errors, Determine the Effect on Assets

question 41

Essay

Given the following list of errors, determine the effect on assets, liabilities, and shareholders' equity by completing the chart below. Use (+) to indicate overstated, (-) to indicate understated, and (0) to indicate no effect. Transaction (a) is completed as an example.
a. The entry to record the purchase of $800 of equipment on account was never posted.
b. The entry to record the purchase of $100 of supplies for cash was posted as a debit to Supplies and a credit to Accounts Payable.
c. A $1,000 debit to Cash was posted as $100.
d. A $400 debit to the Accounts Payable account was never posted.
e. A debit to Accounts Receivable of $500 was posted as a credit to Accounts Receivable.
b.
c.
d.
e.

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