LO 8.6Which of the following transactions will require a journal entry? Indicate if it will be a debit or a credit and to what account the entry will be recorded. Transaction No Journal Entry Needed Journal Entry Needed Debit Credit Outstanding check Interest income NFS check Wire transfer by customer Deposit in transit Bank charges
PA8.
LO 8.6Which of the following transactions will require a
| Transaction | No Journal Entry Needed | Journal Entry Needed | Debit | Credit |
|---|---|---|---|---|
| Outstanding check | ||||
| Interest income | ||||
| NFS check | ||||
| Wire transfer by customer | ||||
| Deposit in transit | ||||
| Bank charges |
Outstanding checks and deposits in transit are the transactions yet to be recorded in the bank statement. These do not require journal entries in the books.
Interest income is not recorded in the books, therefore recorded.
NSF Check is a check received from accounts receivable but dishonored due to insufficient funds. It will be recorded in the books to give effect to the decrease in cash and increase in accounts receivable again.
Wire transfer by the customer is not yet recorded in the books because the business doesn't know about the transaction. So it will be recorded in the books.
Bank charges are not known to the business unless by seeing the bank statement. It will be recorded d in the books.
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