Was the credit column total of the trial balance overstated

Assignment Help Accounting Basics

Reference no: EM132750051

Question - The trial balance prepared by your company at the end of the month did not balance. In reviewing the entries for the month, the accountant noticed that one of the transactions was recorded as a debit to Office Equipment of $900 and a debit to Accounts Payable of $900. The purchase was made on credit. Answer the following questions and explain your answer for each.

A. Was the Accounts Payable account overstated, understated, or correctly stated on the trial balance? If overstated or understated, show by how much.

B. Was the total of the debit column of the trial balance overstated, understated, or correctly stated? If overstated or understated, show by how much.

C. Was the Office Equipment account overstated, understated, or correctly stated? If overstated or understated, show by how much.

D. Was the credit column total of the trial balance overstated, understated, or correctly stated? If overstated or understated, show by how much.

Reference no: EM132750051

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