Question

1) The bookkeeper for MontroseMontrose Company wrote a check for $ 200$200 to pay for furnace maintenance. The check was incorrectly recorded in the general journal as $ 20$20. The entry to correct this error would​ be:

A.

decrease Cash by $ 200$200.

B.

increase Cash by $ 180$180.

C.

increase Repairs and Maintenance Expense by $ 200$200.

D.

increase Repairs and Maintenance Expense by $ 180$180

2) All of the following items are included on the balance sheet as Cash and Cash Equivalents except

A.

certificates of deposit.

B.

time deposits.

C.

​4-week U.S. Treasury bills.

D.

all of the above are included.

Answer 1

Answer to Question 1.

Option D is Correct.

The Journal entry to record the transcation should be:

Repairs and Maintenance expense. 200

Cash . 200

But it was mistakenly recorded for an amount of $20 in place of $200. To correct the error, the journal entry for an additional amount of $180 will be recorded.

The Journal entry will increase Repairs and Maintenance expense and decrese cash by $180.

Answer to Question 2.

Option A is correct.

Certificate of Deposit is a short term Investment, as they are made for a specificied time period