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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
please provide correct solution of this question
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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education