can you please explain what adjusting journal entries mean in these questions and what does how they get dr and cr answers and what they mean?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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can you please explain what adjusting journal entries mean in these questions and what does how they get dr and cr answers and what they mean?

The following information is available for Company Inc. for October 31, 2019
The bank statement balance is $3,506
The cash account balance is $3,930
Outstanding cheques totaled $1,285
Deposits in transit are $1,670
The bank service charge is $30
A cheque for $98 for supplies was recorded as $89 in the ledger
5) The reconciled cash balance as of October 31, 2019 is
f) $3,891
g) $3,951
h) $3,960
i) $3,765
j) None of the above
6) Which of the following is an Adjusting Journal Entry needed in this situation for October 31st:
f) Dr Cash $89 Cr Supplies $89
g) Dr Cash $98 Cr Supplies $98
h) Dr Supplies $89 Cr Cash $89
i) Dr Supplies $98 Cr Cash $98
j) None of the above
7) Which of the following is an Adjusting Journal Entry needed in this situation for October 31st
f) Dr Cash $30 and Cr Bank Expenses $30
g) Dr Cash $30 and Cr Prepaid Supplies $30
h) Dr Prepaid Supplies $30 and Cr Cash $30
i) Dr Bank Expenses $30 and Cr Cash $30
j) None of the above
8) Which of the following is the result of posting in the Cash account an AJE after doing the bank
reconciliation on October 31st:
f) Dr $30 for bank service charge
g) Cr $30 for bank service charge
h) Dr $1,670 for deposits in transit
i) Cr $1,670 for deposits in transit
j) None of the above
Transcribed Image Text:The following information is available for Company Inc. for October 31, 2019 The bank statement balance is $3,506 The cash account balance is $3,930 Outstanding cheques totaled $1,285 Deposits in transit are $1,670 The bank service charge is $30 A cheque for $98 for supplies was recorded as $89 in the ledger 5) The reconciled cash balance as of October 31, 2019 is f) $3,891 g) $3,951 h) $3,960 i) $3,765 j) None of the above 6) Which of the following is an Adjusting Journal Entry needed in this situation for October 31st: f) Dr Cash $89 Cr Supplies $89 g) Dr Cash $98 Cr Supplies $98 h) Dr Supplies $89 Cr Cash $89 i) Dr Supplies $98 Cr Cash $98 j) None of the above 7) Which of the following is an Adjusting Journal Entry needed in this situation for October 31st f) Dr Cash $30 and Cr Bank Expenses $30 g) Dr Cash $30 and Cr Prepaid Supplies $30 h) Dr Prepaid Supplies $30 and Cr Cash $30 i) Dr Bank Expenses $30 and Cr Cash $30 j) None of the above 8) Which of the following is the result of posting in the Cash account an AJE after doing the bank reconciliation on October 31st: f) Dr $30 for bank service charge g) Cr $30 for bank service charge h) Dr $1,670 for deposits in transit i) Cr $1,670 for deposits in transit j) None of the above
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