The Following Information Is Needed to Reconcile the Cash Balance $$\begin{array} { | l | r | r | } \hline \text { A) Cash } & 13,716 & \\\hline \text { Sales revenue } & & 13,716 \\\hline\end{array}$$

question 41

Short Answer

The following information is needed to reconcile the cash balance for Woods Paper Products.
• A deposit of $5,794.62 is in transit.
• Outstanding checks total $1,533.25.
• The book balance is $5,695.62.
• The bookkeeper recorded a $1,524.00 check as $15,240 in payment of the current month's rent.
• The bank balance at February 28,2008 was $16,500.25.
• A deposit of $300 was credited by the bank for $3,000.
• A customer's check for $1,280 was returned for nonsufficient funds.
• The bank service charge is $70.
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Which of the following journal entries is needed to adjust for the booking error?
$$\begin{array} { | l | r | r | } \hline \text { A) Cash } & 13,716 & \\\hline \text { Sales revenue } & & 13,716 \\\hline\end{array}$$ $$\begin{array} { | l | r | r | } \hline \text { B) Rent expense } & 15,240 & \\\hline \text { Cash } & & 1,524 \\\hline\end{array}$$ $$\begin{array} { | l | r | r | } \hline \text { C) Cash } & 13,716 & \\\hline \text { Rent expense } & & 13,716 \\\hline\end{array}$$ $$\begin{array} { | l | r | r | } \hline \text { D) Booking error } & 1,524 & \\\hline \text { Cash } & & 1,524 \\\hline\end{array}$$

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Definitions:

Statement Of Cash Flows

A financial report detailing the inflows and outflows of cash within a company during a specific period, indicating its operating, investing, and financing activities.

Multiple-step

An income statement format that separates operational revenues and expenses from non-operational ones, providing a detailed view of financial performance.

Balance Sheet

A financial statement that provides a snapshot of a company’s financial position, listing assets, liabilities, and equity at a specific point in time.

Prior Period Adjustments

Prior period adjustments are corrections made to an entity's reported financial information to amend errors or omissions from previous reporting periods.