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?
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q122: A(n)_ is a list of all the
Q123: The balances for the accounts of Mike's
Q124: The accounting process for the trial balance
Q125: Charlene Addemup prepared the following trial balance
Q126: Decreases in expenses are _ to expense
Q127: FastForward purchased $25,000 worth of equipment for
Q128: Increases in assets are _ to asset
Q130: Unearned revenue is classified as a(n)_ that
Q131: The _ consists of the steps repeated
Q195: _ is the process of transferring journal
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents