Bank additions: interest earned, collections, deposits. Book additions: deposits in transit. Bank subtractions: fees, NSF checks. Book subtractions: outstanding checks. Journal entries only for NSF checks.
a. Interest earned on deposits in bank: This is income for the company, so it increases the book balance but hasn't hit the bank yet, so it's not reflected in the bank statement. Therefore, it's a book addition and doesn't require a journal entry.
b. Bank collected note receivable on behalf of depositor: The bank collected money on behalf of the company, so it increases the bank balance but hasn't been recorded in the company's books yet. This is a bank addition and doesn't need a journal entry.
c. Minimum balance bank fee: The bank charged the company for not maintaining a minimum balance, so it reduces the bank balance but hasn't been recorded in the company's books yet. This is a bank subtraction and doesn't require a journal entry.
d. NSF checks: A customer's check bounced, so the company's books show the payment was made, but the bank hasn't received the funds. This reduces the book balance but hasn't hit the bank yet, so it's a book subtraction and requires a journal entry to adjust the accounts.
e. Outstanding check written to supplier: The company wrote a check to a supplier, but it hasn't cleared the bank yet. This reduces the book balance but hasn't affected the bank yet, so it's a book subtraction and doesn't need a journal entry.
f. Bank maintenance fee: Similar to the minimum balance fee, this reduces the bank balance but hasn't been recorded in the books yet. This is a bank subtraction and doesn't require a journal entry.
g. Deposit in transit from insurance company: The insurance company sent the company a deposit, but it hasn't hit the bank yet. This increases the book balance but hasn't affected the bank yet, so it's a book addition and doesn't need a journal entry.