Assuming no errors occurred during journalizing or posting


McIntyre Company adheres to a policy of depositing all cash receipts in a bank account and making all payments by check. The cash account as of December 31 has a credit balance of $1,850, and there is no undeposited cash on hand.

(a) Assuming no errors occurred during journalizing or posting, what caused this unusual balance?

(b) Is the $1,850 credit balance in the cash account an asset, a liability, owner's equity, a revenue, or an expense?

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Assuming no errors occurred during journalizing or posting
Reference No:- TGS02546139

Now Priced at $15 (50% Discount)

Recommended (97%)

Rated (4.9/5)