21 Jan Two students are discussing the use of a trial bal
Two students are discussing the use of a trial balance. They wonder if the following errors in different companies would prevent a trial balance from balancing. For each error, what would you tell the students? (a) The bookkeeper debited Supplies for $750 and debited Accounts Payable for $750 for the purchase of supplies on account. (b) Cash collected on account was debited to Cash for $1,000 and credited to Service Revenue for $1,000. (c) A journal entry recording the payment of rent expense was posted to the general ledger as a $650 debit to Rent Expense and a $560 credit to Cash.
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