Given the following list of errors, determine the effect on assets, liabilities, and shareholders' equity by completing the chart below. Use (+) to indicate overstated, (-) to indicate understated, and (0) to indicate no effect. Transaction (a) is completed as an example.
a. The entry to record the purchase of $800 of equipment on account was never posted.
b. The entry to record the purchase of $100 of supplies for cash was posted as a debit to Supplies and a credit to Accounts Payable.
c. A $1,000 debit to Cash was posted as $100.
d. A $400 debit to the Accounts Payable account was never posted.
e. A debit to Accounts Receivable of $500 was posted as a credit to Accounts Receivable.
b.
c.
d.
e.

Question

Given the following list of errors, determine the effect on assets, liabilities, and shareholders' equity by completing the chart below. Use (+) to indicate overstated, (-) to indicate understated, and (0) to indicate no effect. Transaction (a) is completed as an example.
a. The entry to record the purchase of $800 of equipment on account was never posted.
b. The entry to record the purchase of $100 of supplies for cash was posted as a debit to Supplies and a credit to Accounts Payable.
c. A $1,000 debit to Cash was posted as $100.
d. A $400 debit to the Accounts Payable account was never posted.
e. A debit to Accounts Receivable of $500 was posted as a credit to Accounts Receivable.
  b.
c.
d.
e.

Quizplus · Accepted Answer

The Answer of Given the following list of errors, determine the effect on assets, liabilities, and shareholders' equity by completing the chart below. Use (+) to indicate overstated, (-) to indicate understated, and (0) to indicate no effect. Transaction (a) is completed as an example.
a. The entry to record the purchase of $800 of equipment on account was never posted.
b. The entry to record the purchase of $100 of supplies for cash was posted as a debit to Supplies and a credit to Accounts Payable.
c. A $1,000 debit to Cash was posted as $100.
d. A $400 debit to the Accounts Payable account was never posted.
e. A debit to Accounts Receivable of $500 was posted as a credit to Accounts Receivable.
  b.
c.
d.
e.

Given the Following List of Errors, Determine the Effect on Assets