After Preparing an (Unadjusted)trial Balance at Year-End,G

question 184

Essay

After preparing an (unadjusted)trial balance at year-end,G.Chu of Chu Design 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 dividend was recorded to the correct accounts as $90.
4.An additional investment of $5,000 cash by the owner 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.
$$\begin{array} { | c | l | l | l | } \hline \text { Error } & \text { Yes } & \quad\quad& \text { No } \\\hline 1 . & & & \\\hline 2 . & & & \\\hline 3 . & & & \\\hline 4 . & & & \\\hline 5 . & & & \\\hline\end{array}$$

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Definitions:

Production Possibility Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs resources and technology, illustrating trade-offs and opportunity costs.

Output Efficiency

The state of producing the maximum output with the minimum wasted effort or expense.

Productively

In a manner that results in a high degree of effectiveness or efficiency in producing desired outcomes.

Fully Utilizing

Making the most efficient use of resources, assets, or capacities to achieve their maximum potential output or productivity, often in the context of manufacturing processes or economic production.