For each of the following errors, considered individually, indicate whether the error would cause the trial balance totals to be unequal. If the error would cause the trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much.
a. The payment of cash for the purchase of office equipment of $12,900 was debited to Land for $12,900 and credited to Cash for $12,900.
b. The payment of $1,840 on account was debited to Accounts Payable for $184 and credited to Cash for $1,840.
c. The receipt of cash on account of $3,800 was recorded as a debit to Cash for $8,300 and a credit to Accounts Receivable for $3,800.
Answer:
a. The trial balance totals are equal because both the debit and credit entries were journalized and posted for $12,900.
b. The trial balance totals are unequal. The credit total is higher by $1,656 ($1,840 – $184).
c. The trial balance totals are unequal. The debit total is higher by $4,500 ($8,300 – $3,800).