Question

The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6:

1.	Cash balance according to the company’s records at August 31, $42,920.
2.	Cash balance according to the bank statement at August 31, $56,300.
3.	Checks outstanding, $25,390.
4.	Deposit in transit not recorded by bank, $13,325.
5.	A check for $150 in payment of an account was erroneously recorded in the check register as $1,500.
6.	Bank debit memo for service charges, $35.

Journalize the entry or entries that should be made by the company. Refer to the Chart of Accounts for exact wording of account titles.

Answer 1