The bookkeeper for Whispering Winds Equipment Repair made a number of errors in journalizing and posting, as described below. For each error: (a)Indicate whether the trial balance will balance.(b)If the trial balance will not balance, indicate the amount of the difference.(c)Indicate the trial balance column that will have the larger total.

                                                             (a)           (b)             (c)

1                                                           No         $715          Debit

2                                                          Yes          -                -

3                                                          Yes          -                 -

4                                                          No         $705          Credit

5                                                          Yes         -                    -

6                                                          No          $27            Credit

Explanation:

Journal entries and posting depend on the double_entry principle which state that for every Debit entry the must be a corresponding Credit entry and these entries must balance in terms of amounts every entry must balance to have a correct well balanced statements

1. An omission means that an entry has only been made on one side hence the imbalance.

2. Both The prepaid Insurance account and the insurance  expense account have debit balances so if a debit entry was supposed to be made and was made but to the incorrect account then the debit as a column will balance credit even though its made on the incorrect account.

3. The Trial balance will balance because that collection is treated as different but correct transaction. It is treated as though a sale has been made for cash.

4. The credit posting was made two times, the first one was correct the second posting is incorrect.

5. The amount posted is incorrect but is correctly posted as the same amount in both columns.

6. The entry is only incorrect on the debit side, the corresponding credit entry is correct hence the difference will be large on the credit side.

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