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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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hsl.6

Transcribed Image Text:The information below relates to the Cash account in the ledger of Lily Company.
Balance September 1-$17,000;
Cash deposited-$64,340.
Balance September 30-$18,404;
Checks written-$62,936.
The September bank statement shows a balance of $17,422 on September 30 and the following memoranda.
Credits
Debits
Collection of $1,990 note plus interest $40
$2,030
NSF check: Richard Nance
$925
Interest earned on checking account
$55
Safety deposit box rent
$75
At September 30, deposits in transit were $4,950, and outstanding checks totaled $2,883.
(a)
(b)
Prepare the adjusting entries at September 30, assuming (1) the NSF check was from a customer on account, and (2) no interest
had been accrued on the note. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is
entered. Do not indent manually.)
No.
Account Titles and Explanation
Sept. 30
Sept. 30
Sept. 30
Sept. 30
(To record note receivable.)
(To record interest earned.)
(To record NSF check.)
Debit
Credit
Expert Solution
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