The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: Cash balance according to the company's records at August 31, $18,670. Cash balance according to the bank statement at August 31, S19,920. Checks outstanding, S3, 790. Deposit in transit not recorded by bank, $3,040 A check for $170 in payment of an account was erroneously recorded in the check register as $710. 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. If an amount box does not require an entry, leave it blank. DateAccount Debit Credit a. 20Y August 31 Cash Accounts Payable b. August 31 Miscellaneous Expense Cash
The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: Cash balance according to the company's records at August 31, $18,670. Cash balance according to the bank statement at August 31, S19,920. Checks outstanding, S3, 790. Deposit in transit not recorded by bank, $3,040 A check for $170 in payment of an account was erroneously recorded in the check register as $710. 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. If an amount box does not require an entry, leave it blank. DateAccount Debit Credit a. 20Y August 31 Cash Accounts Payable b. August 31 Miscellaneous Expense Cash
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter6: Bank Accounts, Cash Funds, And Internal Controls
Section: Chapter Questions
Problem 5E
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
Transcribed Image Text:The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: Cash balance according to the company's records at
August 31, $18,670. Cash balance according to the bank statement at August 31, $19,920. Checks outstanding, $3,790. Deposit in transit not recorded by bank, $3,040.
A check for $170 in payment of an account was erroneously recorded in the check register as $710. 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. If an amount box does not require an entry, leave it blank. DateAccount Debit Credit a. 20Y6
August 31 Cash Accounts Payable b. August 31 Miscellaneous Expense Cash
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