Question

A company's Cash account shows a balance of $5,600 at the end of the month. Comparing the company's Cash account with the monthly bank statement reveals several additional cash transactions such as deposits outstanding ($1,280), checks outstanding ($2,420), bank service fees ($44), an NSF check from a customer ($240), a customer's note receivable collected by the bank ($510), and interest earned ($67). Prepare the necessary entries to adjust the balance of cash.1. Record the entries that increase cash.2. Record the entries that decrease cash.

Answer 1

cash 750 debit

note receivable 510 credit

NSF check 240 credit

-- to record increases of cash from reconciliation --

bank fees expense 44 debit

cash 44 credit

-- to record decreases of cash from reconciliation --

Step-by-step explanation:

cash account 5,600

bank fees (44)

NSF 240

bank collected 510

adjusted cash: 6,306

We adjust based on the unknow information for the company like fees, collection and NFS found. we could also adjust for mistake but for this time, there isn't any.