Love Corporation is preparing its proof of cash in preparation for its December 31, 2021 financial statements audit. The following information were known: i. An error of not recording checks issued in November but cleared the bank was corrected by Love during December. ii. Bank service charges incurred in December were included in the January Bank Statement received by the company during the first week of January 2022. Based on the above information, the company will make which of the following adjustments to determined adjusted balances as of December 31, 2021? Choices a. Add the bank service charge to the receipts column b. Add the error to the disbursement column c. Deduct the error to the disbursement column d. Add the bank service charge to the December 31 column
Love Corporation is preparing its proof of cash in preparation for its December 31, 2021 financial statements audit. The following information were known: i. An error of not recording checks issued in November but cleared the bank was corrected by Love during December. ii. Bank service charges incurred in December were included in the January Bank Statement received by the company during the first week of January 2022. Based on the above information, the company will make which of the following adjustments to determined adjusted balances as of December 31, 2021? Choices a. Add the bank service charge to the receipts column b. Add the error to the disbursement column c. Deduct the error to the disbursement column d. Add the bank service charge to the December 31 column
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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27. Love Corporation is preparing its proof of cash in preparation for its December 31, 2021 financial statements audit. The following information were known:
i. An error of not recording checks issued in November but cleared the bank was corrected by Love during December.
ii. Bank service charges incurred in December were included in the January Bank Statement received by the company during the first week of January 2022.
Based on the above information, the company will make which of the following adjustments to determined adjusted balances as of December 31, 2021?
Choices
a. Add the bank service charge to the receipts column
b. Add the error to the disbursement column
c. Deduct the error to the disbursement column
d. Add the bank service charge to the December 31 column
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