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:

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded, also known as the market-clearing price.

Equilibrium Quantity

The quantity of goods or services that are supplied and demanded at the equilibrium price, where the amount producers are willing to sell equals the amount consumers are willing to buy.

Price of Ingredients

The cost of raw materials used in the production of goods, which can impact the final price of the product and profitability of producers.

Cattle Feed

A type of food specifically formulated and provided for the dietary needs of cattle, including grains, hay, and other nutrients.