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The following information is obtained from the bank statement and from the records of the business: Bank statement balance as of December 31: $283,000 Deposit in transit: $29,500 Outstanding checks: $68,540 (numbers C505, C508, and C509, and C510) Bank service charge: $750 (Miscellaneous Administrative Expense) Checkbook balance: $245,410 A check for $12,700 in payment of an invoice was incorrectly recorded in the accounts as $12,000 (Accounts Payable). Use the accounts payable account to correct the error.

The following information is obtained from the bank statement and from the records of the business: Bank statement balance as of December 31: $283,000 Deposit in transit: $29,500 Outstanding checks: $68,540 (numbers C505, C508, and C509, and C510) Bank service charge: $750 (Miscellaneous Administrative Expense) Checkbook balance: $245,410 A check for $12,700 in payment of an invoice was incorrectly recorded in the accounts as $12,000 (Accounts Payable). Use the accounts payable account to correct the error.

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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How do I journalize this in the genral journal, what accounts would I use?

The following information is obtained from the bank statement and from the records of the business: Bank statement balance as of December 31: $283,000 Deposit in transit: $29,500 Outstanding checks: $68,540 (numbers C505, C508, and C509, and C510) Bank service charge: $750 (Miscellaneous Administrative Expense) Checkbook balance: $245,410 A check for $12,700 in payment of an invoice was incorrectly recorded in the accounts as $12,000 (Accounts Payable). Use the accounts payable account to correct the error.
Transcribed Image Text:The following information is obtained from the bank statement and from the records of the business: Bank statement balance as of December 31: $283,000 Deposit in transit: $29,500 Outstanding checks: $68,540 (numbers C505, C508, and C509, and C510) Bank service charge: $750 (Miscellaneous Administrative Expense) Checkbook balance: $245,410 A check for $12,700 in payment of an invoice was incorrectly recorded in the accounts as $12,000 (Accounts Payable). Use the accounts payable account to correct the error.
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