Entries for Bank Reconciliation
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Entries for Bank Reconciliation
The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6:
1. Cash balance according to the company's records at August 31, $25,940.
2. Cash balance according to the bank statement at August 31, $27,390.
3. Checks outstanding, $5,270.
4. Deposit in transit not recorded by bank, $4,230.
5. A check for $270 in payment of an account was erroneously recorded in the check register as $720.
6. Bank debit memo for service charges, $40.
Journalize the entries that should be made by the company that (a) increase cash and (b) decrease cash.
a. 20Y6 Aug. 31
b. Aug. 31
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