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, $20,870. Cash balance according to the bank statement at August 31, $37,600. Checks outstanding, $23,375. Deposit in transit not recorded by bank, $7,500. A check for $100 in payment of an account was erroneously recorded in the check register as $1,000. Bank debit memo for service charges, $45. Journalize the entries that should be made by the company that (a) increase cash and (b) decrease cash.

Answer and Explanation:

The journal entries are shown below:

a. For increase in cash

Cash Dr $900   ($1,000 - $100)

    To Account payable $900

(Being the increase in cash is recorded)  

For recording this we debited the cash as it increased the assets and credited the account payable as it reduced the liabilities

b. For decrease in cash  

Miscellaneous expense Dr $45

        To cash $45

(Being the decrease in cash is recorded)

For recording this we debited the miscellaneous expense as it increased the expenses and credited the cash as it reduced the assets

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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