EX 2-17 Effect of errors on trial balance

Indicate which of the following errors, each considered individually, would cause the
trial balance totals to be unequal:
a. A fee of $15,000 earned and due from a client was not debited to Accounts Receivable
or credited to a revenue account, because the cash had not been received.
b. A receipt of $6,000 from an account receivable was journalized and posted as a debit
of $6,000 to Cash and a credit of $6,000 to Fees Earned.
c. A payment of $1,200 to a creditor was posted as a debit of $1,200 to Accounts Payable
and a debit of $1,200 to Cash.
d. A payment of $10,000 for equipment purchased was posted as a debit of $1,000 to
Equipment and a credit of $1,000 to Cash.
e. Payment of a cash withdrawal of $10,000 was journalized and posted as a debit of
$1,000 to Salary Expense and a credit of $10,000 to Cash.
Indicate which of the preceding errors would require a correcting entry.

Answer:
Inequality of trial balance totals would be caused by errors described in (c) and
(e). For (c), the debit total would exceed the credit total by $2,400 ($1,200 +
$1,200). For (e), the credit total would exceed the debit total by $9,000 ($10,000 –
$1,000).

Errors (b), (d), and (e) would require correcting entries.