A Bank Reconciliation Included an Outstanding Check of $850 for the Payment

question 65

Multiple Choice

A bank reconciliation included an outstanding check of $850 for the payment of salaries.The journal entry to record this reconciling item:

• A)should debit Salaries Expense and credit Cash for $850.
• B)should debit Cash and credit Salaries Expense for $850.
• C)should debit Accounts Payable and credit Cash for $850.
• D)is not required.

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Definitions:

Gross Profit

The difference between revenue and the cost of goods sold, indicating the efficiency of a company in managing its labor and supplies in the production process.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a specific period of time.

Balance Sheet

A financial statement that presents a company's financial position at a specific point in time, showing assets, liabilities, and equity.

Trial Balance

An informal listing of the ledger accounts and their balances in the ledger to aid in proving the equality of debits and credits.