In comparing the canceled checks on the bank statement with the entries in the a

Question

In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that check number 2889 for December's utilities was correctly written and drawn for $260 but was erroneously entered in the accounting records as $602. The journal entry to adjust the books for the bank reconciliation would include which of the following for this situation?

In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that check number 2889 for December's utilities was correctly written and drawn for $260 but was erroneously entered in the accounting records as $602. The journal entry to adjust the books for the bank reconciliation would include which of the following for this situation?

Explanation / Answer

$-342 increase to Cash and a $-342 decrease to Utility Expense

Since when wrong entry was passed cash is wrongly credited by $602 which is to be passed as $260 therfore wrongly credited amount is reversed by passing reverse entry of wrong amt credited

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.