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1.You are told the column totals in a trial balance are not equal. After careful analysis, you discover only one error. Specifically, a correctly journalized credit purchase of an automobile for $18,950 is posted from the journal to the ledger with a $18,950 debit to Automobiles and another $18,950 debit to Accounts Payable. The Automobiles account has a debit balance of $37,100 on the trial balance. Answer each of the following questions and compute the dollar amount of any misstatement.
a. Is the debit column total of the trial balance overstated, understated, or correctly stated?b. Is the credit column total of the trial balance overstated, understated, or correctly stated?c. Is the Automobiles account balance overstated, understated, or correctly stated in the trial balance?d. Is the Accounts Payable account balance overstated, understated, or correctly stated in the trial balance?e. If the debit column total of the trial balance is $200,000 before correcting the error, what is the total of the credit column before correction?
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