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Flounder Corporation is preparing a bank reconciliation and has identified the following potential reconciling items.
(a) Deposit in transit $6,150.
(b) Bank service charges $38. (Use Office Expense account.)
(c) Interest credited to Flounder’s account $32.
(d) Outstanding checks $7,670.(e)NSF check returned $570.

Prepare entries necessary to make Flounder’s accounting records correct and complete.

Respuesta :

Answer:

Explanation:

The journal entries are shown below:

a. No entry passed

b. Office expense A/c Dr $38

          To Cash                             $38

(Being bank service charges paid)

c. Cash A/c Dr $32

           To Interest revenue  $32

(Being interest received)

d. No entry passed

e. Accounts receivable A/c Dr $570

         To Cash A/c                                   $570    

(Being check returned)

The deposit in transit and outstanding checks should not be recorded. So, no entry is passed.

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