Question

Mercury Company’s unadjusted book balance at September 30 is $710. If the company's accountant mistakenly recorded a $18 check as $81. After correcting the mistake, Mercury Company would show a cash balance of $______

the answer is 773, but why is it 773?

Mercury Company’s unadjusted book balance at September 30 is $633. If the company's accountant mistakenly recorded a $153 check as $135. After correcting the mistake, Mercury Company would show a cash balance of $______

the answer is 615 but why is it 615? and not 651?

Answer 1

Mercury Company’s unadjusted book balance at September 30 is $710. If the company's accountant mistakenly recorded a $18 check as $81. After correcting the mistake, Mercury Company would show a cash balance of

Ans: $ 773

Explanation:

1) Actual Cheque was  for $ 18, but it was recorded as $81, i.e $63 more than the actual amount were recorded.

2)  So, for correcting mistake , we would add $63 to the bank statement balance.

3) Therefore, after correcting mistake balance would be

= $ 710 ( beginning) + $63 ( error)

$ 773

If more amount is recorded than actual = Add the difference while correcting

Mercury Company’s unadjusted book balance at September 30 is $633. If the company's accountant mistakenly recorded a $153 check as $135. After correcting the mistake, Mercury Company would show a cash balance of

Ans: $ 615

Explanation:

1) Here actual amount is $ 153 but it was recorded as $135 i.e $ 18 less than the actual amount were recorded.

2) As $ 18 were recorded less, so while correcting mistake, we would deduct the $ 18 to the statement.

3) Therfore balance would be:

= $ 633 - $18

= $ 615

if less amount is recorded = than deduct the difference while correcting.