accounting help #2!! thanks for the help!!?

Question

1)Morgan Co purchased supplies inventory for $2000. Due to an error in posting, the inventory account was debited for only $200 when accounts payable was credited for $2000. During which phase of the accounting cycle would this error be discovered?
a)recording the transaction in the journal, b)prep of the financial statements, c)prep of the trial balance, d)analysis of each transaction, e)never
2)Which of the following is a correct statement about the unadjusted trial balance?
a)provides a listing of the balance sheet accounts only, b)provides data in a convenient form for preparing the adjusting entries/financial statments, c)provides a check of the equality of the debits and credits of the ledger accounts after the external transactions have been journalized/posted, d)both B and C, e)all of the above
3)Which of these accounts would normally have a debit balance?
a)prepaid expenses, b)unearned expenses, c)wages payable, d)retained earnings

Answer 1

1) I'll have to assume you're keeping the accounts manually, so the answer is (c) preparation of the trial balance wld throw out the difference. If you're using a/cg software, you only key in the amt once and it'd get posted to the a/c codes keyed in, so the a/cs wld always balance if you use software.

2) The TB is extracted from the whole of the GL, i.e. including all balance sheet and P/L items, so (a) and (e) are definitely out. (d) wld be correct

3) (a) prepaid expenses wld always have a debit balance. If you're talking of a loss-making co. the retained earnings a/c can be an accumulated losses a/c and therefore have a debit balance, but for purposes of this question, I guess you're to assume that a normal co. wld be profitable.

Answer 2

I would say for Q1, the answer would be a) when the transaction was recorded, as it would not balance and most software programs will not let you post a journal that does not balance, and the whole point of double entry system to make sure it all balances.
Q2, not sure, but I would say d) - both b & c points.
Q3, a) prepaid expenses - is an asset to the company so would be a debit balance - wages payable & retained earnings have credit balances - can't say that i've actually heard of unearned expenses.
Hope that helps a little....