The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6:Cash balance according to the company's records at August 31, $24,930.Cash balance according to the bank statement at August 31, $26,260.Checks outstanding, $5,060.Deposit in transit not recorded by bank, $4,060.A check for $590 in payment of an account was erroneously recorded in the check register as $950.Bank debit memo for service charges, $30.Journalize the entries that should be made by the company that (a) increase cash and (b) decrease cash. If an amount box does not require an entry, leave it blank.DateAccountDebitCredita. 20Y6 August 31 b. August 31

Kindly refer explanation section for journal entries. Explanation:Journal entries : a) The journal…

Answered: The following data were accumulated for…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter8: Sarbanes-oxley, Internal Control, And Cash

Section: Chapter Questions

Problem 18E

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The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6:

Cash balance according to the company's records at August 31, $24,930.
Cash balance according to the bank statement at August 31, $26,260.
Checks outstanding, $5,060.
Deposit in transit not recorded by bank, $4,060.
A check for $590 in payment of an account was erroneously recorded in the check register as $950.
Bank debit memo for service charges, $30.

Journalize the entries that should be made by the company that (a) increase cash and (b) decrease cash. If an amount box does not require an entry, leave it blank.