Using the Following Information, List the Items That Will Require

question 25

Essay

Using the following information, list the items that will require adjustments to the accounts of Salem Co.Also, indicate which accounts will increase or decrease due to the adjustment.
(a)The bank statement balance is $2,597.
(b)The cash account balance is $2,680.
(c)Outstanding checks amounted to $703.
(d)Deposits in transit are $732.
(e)The bank service charge is $25.
(f)Interest added to the checking account by the bank is $7.
(g)A check drawn for $59 was incorrectly charged by the bank as $95.

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Definitions:

Loan Syndicates

Groups of banks or financial institutions that come together to provide a large loan to a single borrower, spreading the risk among them.

Partnerships

A business structure where two or more individuals share ownership, profits, and liabilities of the business.

Interest Rate

The cost of borrowing money or the return on invested funds, typically expressed as a percentage of the principal amount per annum.

Inclined To Invest

Having a predisposition or a favorable attitude towards making investments, often with the expectation of achieving a financial return.