Exercise 8-5 Record necessary journal entry or entries to correct cash balance (

Question

Exercise 8-5 Record necessary journal entry or entries to correct cash balance (L.O. 4)
The following is a bank reconciliation for Brian Company as of August 31. Balance per bank statement, August 31 $ 7,470 Add: Deposit in transit 5,676 $13,146 Less: Outstanding checks 6,024 Adjusted balance, August 31 $ 7,122 Balance per ledger, August 31 $ 7,248 Add: Error correction* 54 $ 7,302 Less: NSF check $150 Service and collection charges 30 180 Adjusted balance, August 31 $ 7,122 * The error occurred when the bookkeeper debited Accounts Payable and credited Cash for $93.00, instead of the correct amount, $39.00
Prepare the journal entry or entries needed to adjust or correct the Cash account. Exercise 8-5 Record necessary journal entry or entries to correct cash balance (L.O. 4)
The following is a bank reconciliation for Brian Company as of August 31. Balance per bank statement, August 31 $ 7,470 Add: Deposit in transit 5,676 $13,146 Less: Outstanding checks 6,024 Adjusted balance, August 31 $ 7,122 Balance per ledger, August 31 $ 7,248 Add: Error correction* 54 $ 7,302 Less: NSF check $150 Service and collection charges 30 180 Adjusted balance, August 31 $ 7,122 * The error occurred when the bookkeeper debited Accounts Payable and credited Cash for $93.00, instead of the correct amount, $39.00
Prepare the journal entry or entries needed to adjust or correct the Cash account. Exercise 8-5 Record necessary journal entry or entries to correct cash balance (L.O. 4)
The following is a bank reconciliation for Brian Company as of August 31. Balance per bank statement, August 31 $ 7,470 Add: Deposit in transit 5,676 $13,146 Less: Outstanding checks 6,024 Adjusted balance, August 31 $ 7,122 Balance per ledger, August 31 $ 7,248 Add: Error correction* 54 $ 7,302 Less: NSF check $150 Service and collection charges 30 180 Adjusted balance, August 31 $ 7,122 * The error occurred when the bookkeeper debited Accounts Payable and credited Cash for $93.00, instead of the correct amount, $39.00
Prepare the journal entry or entries needed to adjust or correct the Cash account.

Explanation / Answer

Account Debit Credit Accounts payable 54 NSF Check 150 Service and collection charge 30 Cash 126 [Cash adjustment entries passed as per bank reconciliation]

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