During the bank reconciliation process at Big Dudes Moving Corporation on March 3, 2016, the following errors were discovered in the firm's records:

a. The checkbook and the general journal indicated that Check 1301 dated February 18 was issued for $316 to pay for hauling expenses. However, examination of the canceled check and the listing on the bank statement showed that the actual amount of the check was $308.

b. The checkbook and the general journal indicated that Check 1322 dated February 24 was issued for $404 to pay a telephone bill. However, examination of the canceled check and the listing on the bank statement showed that the actual amount of the check was $440.

INSTRUCTIONS

1. Prepare the adjusted book balance section of the firm's bank reconciliation statement. The book balance as of February 29, 2016, was $19,851. The errors listed are the only two items that affect the book balance.

2. Prepare general journal entries to correct the errors. Date the entries February 29, 2016. Check 1301 was debited to Hauling Expense on February 18, and Check 1322 was debited to Telephone Expense on February 24.

Analyze: What net change to the Cash account occurred as a result of the correcting journal entries?