AB Ltd. has the following information in its books for the period:

Bank Balance, beginning of month  = $14,000
Bank Balance, end of month = $1,580
Deposits in Transit beginning of month = $4,000
Deposits in Transit end of month = $2,000
Outstanding cheques beginning of month $5,000
Outstanding cheques end of month $485.

You received the bank statement and noticed the period end balance of $10,000 does not agree with the Cash account balance in your books. 

Required 1: After preparing the bank reconciliation what debit to cash is needed in an adjusting entry to reflect this information?  $ 

Required 2: After preparing the bank reconciliation what credit to cash is needed in an adjusting entry to reflect this information?  $

Answer rating: 100% (QA)

Required 1 After preparing the bank reconciliation the debit ... View the full answer