The following account balances were listed on the trial balance of Edgar Company at the end of the period:

The company's trial balance is not in balance and the company's accountant has determined that the error is in the cash account.What is the correct balance in the cash account?

Question

The following account balances were listed on the trial balance of Edgar Company at the end of the period:

The company's trial balance is not in balance and the company's accountant has determined that the error is in the cash account.What is the correct balance in the cash account?

Quizplus · Accepted Answer

To find the correct balance in the cash account, we need to start with the known balance and adjust for any errors. The known balance is the debit balance of $55,800. Since the trial balance is not in balance, we need to look for errors that would cause it to be out of balance. The accountant has determined that the error is in the cash account, which means that the balance is either too high or too low. To determine the correct balance, we need to adjust for the error by adding or subtracting the amount of the error. We don't know the amount of the error, so we can't say whether the correct balance is higher or lower than the known balance. However, we can eliminate choices A, B, and C, which all suggest that the correct balance is lower than the known balance. Therefore, the best choice is D, which suggests that the correct balance is higher than the known balance, at $62,100.

The Following Account Balances Were Listed on the Trial Balance