After Preparing an (Unadjusted) Trial Balance at Year-End, R

question 132

Essay

After preparing an (unadjusted) trial balance at year-end, R. Chang of Chang Window Company discovered the following errors:
1. Cash payment of the $225 telephone bill for December was recorded twice.
2. Cash payment of a note payable was recorded as a debit to Cash and a debit to Notes Payable for $1,000.
3. A $900 cash withdrawal by the owner was recorded to the correct accounts as $90.
4. An additional investment of $5,000 cash by the stockholder was recorded as a debit to Common Stock 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 whether the error would cause the trial balance to be out of balance by placing an X in either the yes or no column. Would the errors cause the trial balance to be out of balance?
Error Yes No
1. ________ ________
2. ________ ________
3. ________ ________
4. ________ ________
5. ________ ________
Would the errors cause the trial balance to be out of balance?

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Definitions:

Functionally Asymmetrical

Pertaining to the uneven distribution or activity level of functions across different parts of an entity, particularly in biological systems such as the human brain.

Left Hemisphere

The left side of the human brain, which is often associated with analytical tasks, language processing, and logical reasoning.

Right-handers

Refers to individuals who predominantly use their right hand for activities such as writing and manual tasks.

Preoperational Thought

A stage in Piaget's theory of cognitive development, typically occurring from ages 2 to 7, where children begin to use language and think symbolically, but their thinking is still intuitive and egocentric.