Explanation Journal: Journal is the method of recording monetary business transactions in chronological order. It records the debit and credit aspects of each transaction to abide by the double-entry system. Rules of Debit and Credit: Following rules are followed for debiting and crediting different accounts while they occur in business transactions: Debit , all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities. Credit , all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, and expenses. Non-sufficient checks (NSF): When the customer bank returns the deposited check to the depositor’s bank indicating that there are insufficient funds in the account, such returned or bounced check is referred to as NSF check. Prepare the adjusting or closing journal entries in the books of Company W as follows: a. Service charges of $50 for the month of January were listed on the bank statement. Date Account Titles Debit ($) Credit ($) Bank service charge expense 50 Cash 50 (To record bank service charge) Table (1) Bank service charge expense is an expense account, and it decreases the value of stockholder’s equity by $50 because bank has charged service charges for safety box rent. Hence, bank service charge expense is debited by $50. Cash is an asset account, and it decreases the value of asset by $50. Hence, credit the cash account for $50. b. The bank charged a $250 check drawn on Restaurant W to Company W account. The check was included in the Company B’s bank statement. In this case, the given transaction is included in the banks statement of Company B, hence the adjusting or closing entry is not required. c. A check of $62 was returned to the bank because of insufficient fund on the bank statement of Company W. Date Account Titles Debit ($) Credit ($) Accounts receivable 62 Cash 62 (To record adjusting entry for NSF check) Table (2) Accounts receivable is an asset account, and it increases the value of asset by $62 because the bank has not collected the amount from the customer due to insufficient funds. As the collection could not be made, the amount of accounts receivable account is increased. Hence, debit the accounts receivable account for $62. Cash is an asset account, and it decreases the value of asset by $62...

Fundamental Financial Accounting Concepts, 9th Edition

9th Edition

ISBN: 9780078025907

Author: Thomas P Edmonds, Christopher Edmonds, Frances M McNair, Philip R Olds

Publisher: McGraw-Hill Education

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Chapter 6, Problem 20AP

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Prepare the adjusting or closing journal entries in the books of Company W.

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Chapter 6, Problem 19AP

Chapter 6, Problem 21AP

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Chapter 6 Solutions

Fundamental Financial Accounting Concepts, 9th Edition

Ch. 6 - Prob. 1Q Ch. 6 - Prob. 2Q Ch. 6 - Prob. 3Q Ch. 6 - Prob. 4Q Ch. 6 - Prob. 5Q Ch. 6 - Prob. 6Q Ch. 6 - Prob. 7Q Ch. 6 - Prob. 8Q Ch. 6 - Prob. 9Q Ch. 6 - Prob. 10Q

Ch. 6 - Prob. 11Q Ch. 6 - Prob. 12Q Ch. 6 - Prob. 13Q Ch. 6 - Prob. 14Q Ch. 6 - Prob. 15Q Ch. 6 - Prob. 16Q Ch. 6 - Prob. 17Q Ch. 6 - Prob. 18Q Ch. 6 - Prob. 19Q Ch. 6 - Prob. 20Q Ch. 6 - Prob. 21Q Ch. 6 - Prob. 22Q Ch. 6 - Prob. 23Q Ch. 6 - Prob. 24Q Ch. 6 - Prob. 25Q Ch. 6 - Prob. 26Q Ch. 6 - Prob. 27Q Ch. 6 - Prob. 28Q Ch. 6 - Prob. 29Q Ch. 6 - Prob. 30Q Ch. 6 - Prob. 31Q Ch. 6 - Prob. 32Q Ch. 6 - Prob. 33Q Ch. 6 - Prob. 34Q Ch. 6 - Prob. 35Q Ch. 6 - Prob. 36Q Ch. 6 - Prob. 37Q Ch. 6 - Prob. 38Q Ch. 6 - Prob. 39Q Ch. 6 - Prob. 40Q Ch. 6 - Prob. 1AE Ch. 6 - Prob. 2AE Ch. 6 - Prob. 3AE Ch. 6 - Prob. 4AE Ch. 6 - Prob. 5AE Ch. 6 - Prob. 6AE Ch. 6 - Prob. 7AE Ch. 6 - Prob. 8AE Ch. 6 - Prob. 9AE Ch. 6 - Prob. 10AE Ch. 6 - Prob. 11AE Ch. 6 - Prob. 12AE Ch. 6 - Prob. 13AE Ch. 6 - Prob. 14AE Ch. 6 - Prob. 15AE Ch. 6 - Prob. 16AE Ch. 6 - Prob. 17AP Ch. 6 - Prob. 18AP Ch. 6 - Prob. 19AP Ch. 6 - Prob. 20AP Ch. 6 - Prob. 21AP Ch. 6 - Prob. 22AP Ch. 6 - Prob. 23AP Ch. 6 - Prob. 24AP Ch. 6 - Prob. 25AP Ch. 6 - Prob. 1BE Ch. 6 - Prob. 2BE Ch. 6 - Prob. 3BE Ch. 6 - Prob. 4BE Ch. 6 - Prob. 5BE Ch. 6 - Prob. 6BE Ch. 6 - Prob. 7BE Ch. 6 - Prob. 8BE Ch. 6 - Prob. 9BE Ch. 6 - Prob. 10BE Ch. 6 - Prob. 11BE Ch. 6 - Prob. 12BE Ch. 6 - Prob. 13BE Ch. 6 - Prob. 14BE Ch. 6 - Prob. 15BE Ch. 6 - Prob. 16BE Ch. 6 - Prob. 17BP Ch. 6 - Prob. 18BP Ch. 6 - Prob. 19BP Ch. 6 - Prob. 20BP Ch. 6 - Prob. 21BP Ch. 6 - Prob. 22BP Ch. 6 - Prob. 23BP Ch. 6 - Prob. 24BP Ch. 6 - Prob. 25BP Ch. 6 - Prob. 1ATC Ch. 6 - Prob. 3ATC Ch. 6 - Prob. 4ATC Ch. 6 - Prob. 5ATC Ch. 6 - Prob. 6ATC Ch. 6 - Prob. 7ATC Ch. 6 - Prob. 8ATC Ch. 6 - Prob. 9ATC Ch. 6 - Prob. 1CP

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