The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: Cash balance according to the company's records at July 31, $27,340. Cash balance according to the bank statement at July 31, $28,830. Checks outstanding, $5,550. Deposit in transit, not recorded by bank, $4,460. A check for $270 in payment of an account was erroneously recorded in the check register as $720. Bank debit memo for service charges, $50. Journalize the entries that should be made by the company, part (A) Error and part (B) Service Charge.

Question

Business

Cooper Farley

22 August, 01:15

The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: Cash balance according to the company's records at July 31, $27,340. Cash balance according to the bank statement at July 31, $28,830. Checks outstanding, $5,550. Deposit in transit, not recorded by bank, $4,460. A check for $270 in payment of an account was erroneously recorded in the check register as $720. Bank debit memo for service charges, $50. Journalize the entries that should be made by the company, part (A) Error and part (B) Service Charge.

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Answers (2)

Know the Answer?

Jadyn Brock · Answer 1

bank services expense 50 debit

cash 50 credit

cash 450 credit

account payable 450 credit

Jaida Middleton · Answer 2

cash 450 credit

account payable 450 credit

bank services expense 50 debit

cash 50 credit

Explanation:

to amend the mistake we will adjust the difference.

previously we reduce account payable by 720 we credit by 450. that way we arrive the correct movement of 27

for the bank services we declare the expense and decrease cash.