Question

What is the dollar effect on the company's unadjusted trial balance from the following errors?

1) A debit to Equipment for $4,000 and a credit to Notes Payable for $400.
2) A debit to Wages Expense for $450, Supplies Expense for $220, Utilities Expense for $550, and a credit to Cash for $1,270.
3) A debit to Cash for $525 and a credit to Sales for $255.
4) Cannot be determined from the given information.

Answer 1

The dollar effect on the company's unadjusted trial balance can be determined for the given errors. Error 1 would result in a $3,600 increase on the debit side, Error 2 would result in a $1,470 increase on the debit side, and Error 3 would result in a $270 increase on the debit side.

Step-by-step explanation:

The dollar effect on the company's unadjusted trial balance can be determined for the given errors. Let's analyze each error:

1) A debit to Equipment for $4,000 and a credit to Notes Payable for $400:

This error would result in an increase of $3,600 ($4,000 - $400) on the debit side of the unadjusted trial balance, as equipment is an asset and notes payable is a liability.

2) A debit to Wages Expense for $450, Supplies Expense for $220, Utilities Expense for $550, and a credit to Cash for $1,270:

This error would result in an increase of $1,470 ($450 + $220 + $550 + $1,270) on the debit side of the unadjusted trial balance, as expenses are recorded as debits and cash is a credit.

3) A debit to Cash for $525 and a credit to Sales for $255:

This error would result in an increase of $270 ($525 - $255) on the debit side of the unadjusted trial balance, as cash is an asset and sales is revenue.

4) Cannot be determined from the given information:

Since this option is not applicable, we can disregard it.