Accounting Ch 3

If the Trial Balance is not equal, you should first:

Re-add the Trial Balance and calculate the difference

A Debit to a Liability account was posted to a revenue account. This causes:

Revenue to be Understated

Trial Balance

The informal listing of the ledger accounts and their balances in the ledger to aid in proving the equality of debits and credits

When the Trial Balance includes a debit column total of 10,350 and a Credit Column total of 10,950, it is probable that:

a 300$ debit was recorded as a credit

The proper sequence used in recording a business transaction is:

1. Analyze 2. Journalize 3. Post 4. Record the acct. balance 5. Complete the reference column in the journal

On July 1, Villa's Construction paid 6 months insurance in advance, the Journal entry to record the transaction is:

Debit prepaid insurance, and credit cash

The posting reference column on the general journal

Displays to which accounts the transactions have been posted Shows which transactions have been posted to the ledger Allows us to cross reference the general ledger

If the debit and Credit totals of a trial balance are not equal it could be because

Incorrectly calculating the debit side of the trial balance