Answered: The bank mistakenly withdraws a check…

The bank mistakenly withdraws a check amounting $75,000 on the company’s account. What is the journal entry to correct the bank record?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter7: Accounting For Cash

Section: Chapter Questions

Problem 3TF

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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

The bank mistakenly withdraws a check amounting $75,000 on the
company’s account. What is the journal entry to correct the bank record?

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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