Question

Required information

A bank reconciliation proves the accuracy of the depositor's and the bank's records. The bank statement balance is adjusted for items such as outstanding checks and unrecorded deposits made on or before the bank statement date but not reflected on the statement. The book balance is adjusted for items such as service charges, bank collections for the depositor, and interest earned on the account. The company's bank reconciliation at June 30 included interest earned in the amount of $150. Complete the necessary journal entry .

Answer 1

Date Account Title Debit Credit

June 30 Cash $150

Interest revenue $150

Step-by-step explanation:

Interest earned is considered to be revenue so it will be credited to the interest revenue account.

Cash will be debited because the interest revenue increased it and assets are debited when they increase.