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

question 92

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 $790 but was erroneously entered in the accounting records as $970.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 decrease to Utility Expense
• C)$20 decrease to Cash and a $20 decrease to Utility Expense
• D)$20 increase to Cash and a $120 decrease to Utility Expense
• E)$970 increase to Cash

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Definitions:

Hallucinations

Perceptions in a conscious and awake state in the absence of external stimuli, which have qualities of real perception, making them vivid and distinct.

Sensory Perceptions

The process of receiving and interpreting information through the senses such as sight, sound, touch, taste, and smell.

Bulimia Nervosa

An eating disorder characterized by binge eating followed by purging, excessive exercise, or fasting to prevent weight gain.

Binge Eating

A disorder characterized by recurrent episodes of eating large quantities of food, often quickly and to the point of discomfort.