O'Reilly logo

Problem Solving Survival Guide to accompany Financial Accounting, 8th Edition by Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

SOLUTION TO EXERCISE 2-6

images

Approach: For each error:

  1. Determine if total debits equal total credits in the journal and in the ledger. An imbalance in debits and credits in the journal and posting errors may cause an imbalance of total debits and credits in the ledger.
  2. Determine the amount of difference and larger column if the trial balance is not in balance. Errors that will cause an imbalance in the trial balance include:
    1. Failure to record either the debit or credit portion (but not both portions) of a journal entry.
    2. Recording the debit and credit portions of a journal entry but for unequal amounts.
    3. Failure to post either the debit or credit portion of a journal entry.
    4. Posting either the debit or credit portion (but not both portions) of a journal entry more than once.
    5. Incorrect computation of a ledger account balance.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required