Trial Balance Video Lessons

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Problem: A trial balance will indicate the existence of an error if: a. The purchase of a typewriter for $870 is entered in the accounting records as a debit of $87 to Office Equipment and a credit of $87 to Accounts Payable. b. The collection of $75 cash is recorded by a debit to Accounts Receivable and a credit to Cash. c. A ledger account with a credit balance is listed as a debit amount in the trial balance. d. A journal entry debiting Equipment is posted as a debit to the Building account.

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Problem Details

A trial balance will indicate the existence of an error if:

a. The purchase of a typewriter for $870 is entered in the accounting records as a debit of $87 to Office Equipment and a credit of $87 to Accounts Payable.

b. The collection of $75 cash is recorded by a debit to Accounts Receivable and a credit to Cash.

c. A ledger account with a credit balance is listed as a debit amount in the trial balance.

d. A journal entry debiting Equipment is posted as a debit to the Building account.

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Based on our data, we think this problem is relevant for Professor Nowosielski's class at OAKLAND.