When a company records the cost of cutting down timber for example this cost is deemed to be :
a. exploration cost.
b. asset retirement obligation.
c. development cost.
d. depletion cost.
D
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Clayborn Company' bank reconciliation as of May 31 is shown below. Bank balance$15,800 Book balance$17,025 + Deposit in transit 5,200 Bank service fees -25 - Outstanding checks -4,600 NSF returned -600 Adjusted bank balance$16,400 Adjusted book balance$16,400 One of the adjusting journal entries that Clayborn must record as a result of the bank reconciliation includes:
A. A credit to Cash of $600 B. A debit to Cash of $625 C. A credit to Cash of $4,600 D. A debit to cash of $25 E. A debit to Cash of $5,200
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