The bank reconciliation shows the following adjustments:Deposits in transit: $852Notes receivable collected by bank: $1,000; interest: $20Outstanding checks: $569Error by bank: $300Bank charges: $30Using the following accounts: Bank ErrorsBank Service ChargesCashDeposits in TransitInterest ExpenseInterest IncomeNotes ReceivableOutstanding Checksprepare the two correcting journal entries:DR [ Select ] ["Bank Service Charges", "Interest Expense", "Interest Income", "Bank Errors", "Cash"] [ Select ] ["$569", "$30", "$300", "$1,020", "$852"] CR [ Select ] ["Interest Expense", "Cash", "Bank Service Charges", "Interest Income", "Bank Errors"] [ Select ] ["$852", "$300", "$569", "$1,030", "$30"] andDR [ Select ] ["Notes Receivable", "Interest Income", "Interest Expense", "Cash", "Bank Service Charges"] [ Select ] ["$1,000", "$300", "$1,020", "$569", "$852"] CR [ Select ] ["Outstanding Checks", "Deposits in Transit", "Bank Errors", "Notes Receivable", "Interest Expense"] [ Select ] ["$1,020", "$852", "$1,000", "$300", "$569"] CR [ Select ] ["Bank Errors", "Deposits in Transit", "Cash", "Outstanding Checks", "Interest Income"] [ Select ] ["$1,020", "$20", "$569", "$300", "$852"] The bank reconciliation shows the following adjustments:• Deposits in transit: $852• Notes receivable collected by bank: $1,000O; interest: $20• Outstanding checks: $569· Error by bank: $300Bank charges: $30Using the following accounts:Bank ErrorsBank Service ChargesCashDeposits in TransitInterest ExpenseInterest IncomeNotes ReceivableOutstanding Checksprepare the two correcting journal entries:DR[ Select ][ Select ]CR[ Select ][ Select ]andDR[ Select ][ Select]CR[ Select ][ Select ]CR[ Select ][ Select ]>>>

Bank reconciliation statement is prepared by almost every organization at a particular time. It is a statement that is required to match the cash balance with the bank balance. We need to adjust check outstanding, cheque deposited but not collected, directly deposited into Bank, NSF check, etc.

Answered: The bank reconciliation shows the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The bank reconciliation shows the following adjustments:

Deposits in transit: $852
Notes receivable collected by bank: $1,000; interest: $20
Outstanding checks: $569
Error by bank: $300
Bank charges: $30

Using the following accounts:

Bank Errors	Bank Service Charges	Cash	Deposits in Transit
Interest Expense	Interest Income	Notes Receivable	Outstanding Checks

prepare the two correcting journal entries:

DR	[ Select ] ["Bank Service Charges", "Interest Expense", "Interest Income", "Bank Errors", "Cash"]	[ Select ] ["$569", "$30", "$300", "$1,020", "$852"]
CR	[ Select ] ["Interest Expense", "Cash", "Bank Service Charges", "Interest Income", "Bank Errors"]	[ Select ] ["$852", "$300", "$569", "$1,030", "$30"]

and

DR	[ Select ] ["Notes Receivable", "Interest Income", "Interest Expense", "Cash", "Bank Service Charges"]	[ Select ] ["$1,000", "$300", "$1,020", "$569", "$852"]
CR	[ Select ] ["Outstanding Checks", "Deposits in Transit", "Bank Errors", "Notes Receivable", "Interest Expense"]	[ Select ] ["$1,020", "$852", "$1,000", "$300", "$569"]
CR	[ Select ] ["Bank Errors", "Deposits in Transit", "Cash", "Outstanding Checks", "Interest Income"]	[ Select ] ["$1,020", "$20", "$569", "$300", "$852"]

The bank reconciliation shows the following adjustments:
• Deposits in transit: $852
• Notes receivable collected by bank: $1,000O; interest: $20
• Outstanding checks: $569
· Error by bank: $300
Bank charges: $30
Using the following accounts:
Bank Errors
Bank Service Charges
Cash
Deposits in Transit
Interest Expense
Interest Income
Notes Receivable
Outstanding Checks
prepare the two correcting journal entries:
DR
[ Select ]
[ Select ]
CR
[ Select ]
[ Select ]
and
DR
[ Select ]
[ Select]
CR
[ Select ]
[ Select ]
CR
[ Select ]
[ Select ]
>
>
>

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