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Entries for Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: Cash balance
Entries for Bank Reconciliation
The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6:
- Cash balance according to the companys 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.
a. 20Y6 Aug. 31 | Cash | ||
Accounts Payable | |||
b. Aug. 31 | Miscellaneous Expense | ||
Cash |
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