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22 May, 18:49

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.

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  1. 22 May, 19:41
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    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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