The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: Cash balance according to the company’s records at August 31, $20,870. Cash balance according to the bank statement at August 31, $37,600. Checks outstanding, $23,375. Deposit in transit not recorded by bank, $7,500. A check for $100 in payment of an account was erroneously recorded in the check register as $1,000. Bank debit memo for service charges, $45. Journalize the entries that should be made by the company that (a) increase cash and (b) decrease cash.

Answer and Explanation:

The journal entries are shown below:

a. For increase in cash

Cash Dr $900   ($1,000 - $100)

    To Account payable $900

(Being the increase in cash is recorded)  

For recording this we debited the cash as it increased the assets and credited the account payable as it reduced the liabilities

b. For decrease in cash  

Miscellaneous expense Dr $45

        To cash $45

(Being the decrease in cash is recorded)

For recording this we debited the miscellaneous expense as it increased the expenses and credited the cash as it reduced the assets

answer; ///(d); determining who competes most closely   with whom evaluating whether industry driving forces and competitive pressure favor some strategic groups and hurt others, and ascertaining whether the profit potential of different strategic groups varies due to the strengths and weaknesses in each groups respective market positions;

answer; ///decision making under risk;