A Company's Records Indicate the Balance in Its Chequing Account

question 33

Essay

A company's records indicate the balance in its chequing account at the end of the month is $5,671.Comparing the company's records with the monthly bank statement reveals several additional cash transactions,such as a bank service charge of $75,a $4,000 note receivable collected by the bank plus interest earned of $100,and an NSF cheque for $350.Determine the company's adjusted cash balance and prepare the journal entries necessary to adjust the account balance.

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Definitions:

Discount

A reduction from the usual cost of something, usually provided as an incentive to increase sales.

Outstanding Balance

Outstanding Balance refers to the amount of money owed on a loan or credit that has not yet been repaid.

Invoice

A detailed bill provided by a seller to a buyer listing goods or services provided, alongside quantities and prices.

Terms

Conditions and stipulations outlined in an agreement or contract that specify the rights and obligations of the parties involved.