Part 1: Describe the purpose of a Trial Balance and the steps of how to prepare a Trial Balance.
Part 2: Meredith Ward is the assistant chief accountant at Frazier Company, a manufacturer of
computer chips and cellular phones. The company presently has total sales of $20 million. It is
the end of the first quarter. Meredith is hurriedly trying to prepare a trial balance so that quarterly
financial statements can be prepared and released to management and the regulatory agencies.
The total credits on the trial balance exceed the debits by $1,000. In order to meet the 4 p.m.
deadline, Meredith decides to force the debits and credits into balance by adding the amount of
the difference to the Equipment account. She chooses Equipment because it is one of the larger
account balances; percentage-wise, it will be the least misstated. Meredith plugs the difference!
She believes that the difference will not affect anyone's decisions. She wishes that she had
another few days to find the error but realizes that the financial statements are already late.
Answer the following questions:.
Part 1 Describe the purpose of a Trial Balance and the steps of how.pdf
1. Part 1: Describe the purpose of a Trial Balance and the steps of how to prepare a Trial Balance.
Part 2: Meredith Ward is the assistant chief accountant at Frazier Company, a manufacturer of
computer chips and cellular phones. The company presently has total sales of $20 million. It is
the end of the first quarter. Meredith is hurriedly trying to prepare a trial balance so that quarterly
financial statements can be prepared and released to management and the regulatory agencies.
The total credits on the trial balance exceed the debits by $1,000. In order to meet the 4 p.m.
deadline, Meredith decides to force the debits and credits into balance by adding the amount of
the difference to the Equipment account. She chooses Equipment because it is one of the larger
account balances; percentage-wise, it will be the least misstated. Meredith plugs the difference!
She believes that the difference will not affect anyone's decisions. She wishes that she had
another few days to find the error but realizes that the financial statements are already late.
Answer the following questions:
