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Unformatted text preview: Correcting Errors Sometimes the trial balance columns dont equal Steps to find the error: Search for any missing accounts Divide the out-of-balance amount by two This will help find a debit that was listed as a credit, and vice versa Divide the out-of-balance amount by nine Slide misstating an amount by omitting or adding a zero ($4000 as $400) Transposition switching figures within a number ($1342 as $1423) Chart of Accounts Each account is assigned a number Assets usually begin with 1 100s or 1000s Liabilities usually begin with 2 200s and 200s Stockholders Equity (Common Stock, Dividends and Retained Earnings) begin with 3 Revenues with a 4 and Expenses with a 5...
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