120. A trial balance taken at year-end showed total credits exceed total debits by $4,950. This…

120. A trial balance taken at year-end showed total credits exceed total debits by $4,950. This…

120. A trial balance taken at year-end showed total
credits exceed total debits by $4,950. This discrepancy could have been caused
by:
A. An error in the general journal where a $4,950
increase in Accounts Receivable was recorded as an increase in Cash.
B. A net income of $4,950.
C. The balance of $49,500 in Accounts Payable being
entered in the trial balance as $4,950.
D. The balance of $5,500 in
the Office Equipment account being entered on the trial balance as a debit of
$550.
E. An error in the general journal where a $4,950
increase in Accounts Payable was recorded as a decrease in Accounts Payable.

121. In which of the following situations would the
trial balance not balance?
A. A $1,000 collection of an account receivable was
erroneously posted as a debit to Accounts Receivable and a credit to Cash.
B. The purchase of office supplies on account for $3,250
was erroneously recorded in the journal as $2,350 debit to Office Supplies and
credit to Accounts Payable.
C. A $50 cash receipt for the performance of a service
was not recorded at all.
D. The purchase of office equipment for $1,200 was
posted as a debit to Office Supplies and a credit to Cash for $1,200.
E. The cash payment of a
$750 account payable was posted as a debit to Accounts Payable and a debit to
Cash for $750.

122. The credit purchase of a delivery truck for
$4,700 was posted to Delivery Trucks as a $4,700 debit and to Accounts Payable
as a $4,700 debit. What effect would this error have on the trial
balance?
A. The total of the Debit column of the trial balance
will exceed the total of the Credit column by $4,700.
B. The total of the Credit column of the trial balance
will exceed the total of the Debit column by $4,700.
C. The total of the Debit
column of the trial balance will exceed the total of the Credit column by
$9,400.
D. The total of the Credit column of the trial balance
will exceed the total of the Debit column by $9,400.
E. The total of the Debit column of the trial balance
will equal the total of the Credit column.

123. If the Debit and Credit column totals of a trial
balance are equal, then:
A. All transactions have been recorded correctly.
B. All entries from the journal have been posted to the
ledger correctly.
C. All ledger account balances are correct.
D. The total debit entries
and total credit entries are equal.
E. The balance sheet would be correct.

124. Of the following errors, which one by itself will
cause the trial balance to be out of balance?
A. A $200 cash salary payment posted as a $200 debit to
Cash and a $200 credit to Salaries Expense.
B. A $100 cash receipt from
a customer in payment of his account posted as a $100 debit to Cash and a $10
credit to Accounts Receivable.
C. A $75 cash receipt from a customer in payment of his
account posted as a $75 debit to Cash and a $75 credit to Cash.
D. A $50 cash purchase of office supplies posted as a
$50 debit to Office Equipment and a $50 credit to Cash.
E. An $800 prepayment from a customer for services to be
rendered in the future was posted as an $800 debit to Unearned Revenue and an
$800 credit to Cash.

125. A $130 credit to Office Equipment was credited to
Fees Earned by mistake. By what amounts are the accounts under- or overstated
as a result of this error?
A. Office Equipment, understated $130; Fees Earned,
overstated $130.
B. Office Equipment, understated $260; Fees Earned,
overstated $130.
C. Office Equipment,
overstated $130; Fees Earned, overstated $130.
D. Office Equipment, overstated $130; Fees Earned,
understated $130.
E. Office Equipment, overstated $260; Fees Earned,
understated $130.

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