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, $20,870. Cash balance according to the bank statement at August 31, $37,600. Checks outstanding, $23,375. Deposit in transit not recorded by bank, $7,500. A check for $100 in payment of an account was erroneously recorded in the check register as $1,000. Bank debit memo for service charges, $45. Journalize the entries that should be made by the company that (a) increase cash and (b) decrease cash.

Answer and Explanation:

The journal entries are shown below:

a. For increase in cash

Cash Dr $900   ($1,000 - $100)

    To Account payable $900

(Being the increase in cash is recorded)  

For recording this we debited the cash as it increased the assets and credited the account payable as it reduced the liabilities

b. For decrease in cash  

Miscellaneous expense Dr $45

        To cash $45

(Being the decrease in cash is recorded)

For recording this we debited the miscellaneous expense as it increased the expenses and credited the cash as it reduced the assets

you don't if you paid you paid. it's like if i bought a computer and used it then i say idon't want it anymore so im gonna return it. you can't. unlkess you have your reciept

c.

explanation:

regressive tax taxes the poor and less of the wealthy. this the rich get richer and the poor get more poor. this would create a large wealth gap.