Entries for Bank ReconciliationThe following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6:1. Cash balance according to the company's records at August 31, $25,940.2. Cash balance according to the bank statement at August 31, $27,390.3. Checks outstanding, $5,270.4. Deposit in transit not recorded by bank, $4,230.5. A check for $270 in payment of an account was erroneously recorded in the check register as $720.6. 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.a. 20Y6 Aug. 31b. Aug. 31

These are the accounting transactions that are having a monetary impact on the financial statement…

Answered: Entries for Bank Reconciliation

Business

Accounting

Entries for Bank Reconciliation

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter5: Cash Control Systems

Section5.2: Bank Reconciliation

Problem 1OYO

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Question

Entries for Bank Reconciliation
The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6:
1. Cash balance according to the company's records at August 31, $25,940.
2. Cash balance according to the bank statement at August 31, $27,390.
3. Checks outstanding, $5,270.
4. Deposit in transit not recorded by bank, $4,230.
5. A check for $270 in payment of an account was erroneously recorded in the check register as $720.
6. 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.
a. 20Y6 Aug. 31
b. Aug. 31

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