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Q-The Cash account in the ledger of Hensley, Inc. showed a balance of $3,100 at June 30. The bank statement, however, showed a balance of $3,900 at the same date. The only reconciling items consisted of a $700 deposit in transit, a bank service charge of $7, and a large number of outstanding checks. Upon completion of the bank reconciliation, a journal entry will be required to update the depositor's accounting records. This entry will include: a. Debit to Bank Service Charge Expense for $7. b. Debit to Cash for $7. c. Debit to Cash for $700. d. Credit to Cash for $700.

Q-The Cash account in the ledger of Hensley, Inc. showed a balance of $3,100 at June 30. The bank statement, however, showed a balance of $3,900 at the same date. The only reconciling items consisted of a $700 deposit in transit, a bank service charge of $7, and a large number of outstanding checks. Upon completion of the bank reconciliation, a journal entry will be required to update the depositor's accounting records. This entry will include: a. Debit to Bank Service Charge Expense for $7. b. Debit to Cash for $7. c. Debit to Cash for $700. d. Credit to Cash for $700.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q-The Cash account in the ledger of Hensley, Inc. showed a balance of $3,100 at June 30. The bank statement, however, showed a balance of $3,900 at the same date. The only reconciling items consisted of a $700 deposit in transit, a bank service charge of $7, and a large number of outstanding checks. Upon completion of the bank reconciliation, a journal entry will be required to update the depositor's accounting records. This entry will include: a. Debit to Bank Service Charge Expense for $7. b. Debit to Cash for $7. c. Debit to Cash for $700. d. Credit to Cash for $700.
Transcribed Image Text:Q-The Cash account in the ledger of Hensley, Inc. showed a balance of $3,100 at June 30. The bank statement, however, showed a balance of $3,900 at the same date. The only reconciling items consisted of a $700 deposit in transit, a bank service charge of $7, and a large number of outstanding checks. Upon completion of the bank reconciliation, a journal entry will be required to update the depositor's accounting records. This entry will include: a. Debit to Bank Service Charge Expense for $7. b. Debit to Cash for $7. c. Debit to Cash for $700. d. Credit to Cash for $700.
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