Question

Which of the following would not cause the adjusted trial balance totals to be unequal?

1) The adjustment for prepaid insurance was omitted.
2) The adjustment for accrued salary expenses of $12,428 was journalized as a debit to Salary Expense for $12,428 and a debit to Accrued Salary Expense for $12,428.
3) The adjustment for accrued fees of $16,340 was journalized as a debit to Accounts Payable for $16,430 and a credit to Fees Earned of $16,340.
4) The adjustment for depreciation of $3,545 was journalized as a debit to Depreciation Expense for $3,454 and a credit to Accumulated Depreciation of $3,545.

Answer 1

The correct answer is option 3.

Step-by-step explanation:

The correct answer is option 3) The adjustment for accrued fees of $16,340 was journalized as a debit to Accounts Payable for $16,430 and a credit to Fees Earned of $16,340.

When preparing an adjusted trial balance, all adjustments made to the accounts should result in equal debits and credits. In this case, option 3 results in an unequal entry, as the debit entry is $90 higher than the credit entry.

Therefore, option 3 is the correct answer as it would cause the adjusted trial balance totals to be unequal.