If a check correctly written and paid by the bank for $749 is incorrectly recorded in the company's books for $794, this error be treated on the bank reconciliation--- Subtract $45 from the book balance.
What is bank reconciliation?
Bank Reconciliation is an important process in accounting in which organizations match their bank statements with the transactions that are recorded in their general ledger. Preparing a bank reconciliation statement helps businesses to eliminate possible errors in transactions or bookkeeping
What is the journal entry for bank reconciliation?
The journal entries for the bank fees would debit Bank Service Charges and credit Cash. The journal entry for a customer's check that was returned due to insufficient funds will debit Accounts Receivable and will credit Cash.
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Answer:
The situations that might have created the budget deficit for the Constantine family are an unexpected increase in rent, higher cost of food( away), higher cost of personal gifts, and donations. The current budget deficit is $210. These are the items of expenditure that could have increased and have led to the budget deficit for the Constantine family.
Explanation:
Answer:
(a) revenues recognized and deferred,
a decrease in deferred revenues and a recognition of accrued revenues results in higher working capital (current assets increase while current liabilities decrease)
(b) cost of goods sold,
An increase in cost of goods sold results in a decrease of inventories, therefore, working capital decreases (less current assets)
(c) employee salary and wages
employee wages decrease cash (if they are paid) or increase wages payable (current liability) if they are not paid yet. It decreases working capital
(d) income tax expense.
income taxes decrease cash (if they are paid) or increase income taxes payable (current liability) if they are not paid yet. It decreases working capital
Managerial accounting serves the needs of a firms; managers
