You are told the column totals in a trial balance are not eq

You are told the column totals in a trial balance are not equal. After careful analysis, you discover only one error. Specifically, a correctly journalized credit purchase of an automobile for $18,250 is posted from the journal to the ledger with an $18,250 debit to Automobiles and another $18,250 debit to Accounts Payable. The Automobiles account has a debit balance of $43,252 on the trial balance. Answer each of the following questions and compute the dollar amount of any misstatement. 1. Select the appropriate choice from the \'Account Status\' column 2. In cases where the amount is understated or overstated, use the \'Amount\' column to fill in the amount by which the account or trial balance total is understated or overstated. (Enter the amounts understated with a minus sign.) Statements Account Status Amount a. The debit column total of the trial balance b. The credit column total of the trial balance c. The balance of the automobiles account in the trial balance d. The balance of the accounts payable account in the trial balance

Solution

1)Overstated and by the amount 18250

2)Understated and by the amount 18250

3)correctly stated amoutn is 0

4)understated by the amount 18250+18250=36500 since it has to be credit of 18250 but posted is debit of 18250 to make it credit of 18250 we need to make credit of 36500