In Comparing the Canceled Checks on the Bank Statement with the Entries

question 194

Multiple Choice

In comparing the canceled checks on the bank statement with the entries in the accounting records,it is found that check number 2889 for December's utilities was correctly written and drawn for $970 but was erroneously entered in the accounting records as $790.The journal entry to adjust the books for the bank reconciliation would include which of the following for this situation?

• A)$180 decrease to Cash and a $180 decrease to Utility Expense
• B)$180 increase to Cash and a $180 increase to Utility Expense
• C)$180 decrease to Cash and a $180 increase to Utility Expense
• D)$180 increase to Cash and a $120 decrease to Utility Expense
• E)$970 increase to Cash and a $790 decrease to Utility Expense

---

Definitions:

Government Imposed Taxes

Charges levied by the government on individuals, goods, services, or transactions to fund public expenditures.

Marginal Social Cost

The total cost to society of producing an additional unit of a product, including both the private cost and any external costs.

Pollution Emission

The release of pollutants into the environment, typically from industrial processes or vehicles.

Pollution Reduction

The process of decreasing the amount of pollutants that are released into the environment.