After Preparing an Unadjusted Trial Balance at Year-End, the Accountant

question 122

Essay

After preparing an unadjusted trial balance at year-end, the accountant for Chu Design Company discovered the following errors:(1) The payment of the $225 telephone bill for December was recorded twice.(2) The payment of a $1,000 note payable was recorded as a debit to Cash and a debit to Notes Payable.(3) A $900 withdrawal by the owner was recorded to the correct accounts as $90.(4) An additional investment of $5,000 by the owner was recorded as a debit to
G. Chu, Capital and a credit to Cash.(5) A credit purchase of office equipment for $1,800 was recorded as a debit to the Office Equipment account with no offsetting credit entry. Using the form below, indicate if each error would cause the trial balance to be out of balance. Would the error cause the trial balance to be out of balance?
Would the error cause the trial balance to be out of balance?

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Definitions:

Analytical Intelligence

One aspect of a broader view of intelligence, focusing on the ability to analyze, evaluate, judge, compare and contrast.

Cross-Sectional Studies

Observational research designs that analyze data from a population, or a representative subset, at a specific point in time.

Intelligence Test

A uniform test created to evaluate human intellect and mental capacities.

Triarchic Theory

A theory of intelligence proposed by psychologist Robert Sternberg, which categorizes intelligence into three aspects: analytical, creative, and practical.