The bank reconciliation shows the following adjustments:Deposits in transit: $852Notes receivable collected by bank: $1,000; interest: $20Outstanding checks: $569Error by bank: $300Bank charges: $30Using the following accounts: Bank ErrorsBank Service ChargesCashDeposits in TransitInterest ExpenseInterest IncomeNotes ReceivableOutstanding Checksprepare the two correcting journal entries:DR [ Select ] ["Cash", "Bank Service Charges", "Interest Income", "Bank Errors", "Interest Expense"] [ Select ] ["$300", "$852", "$30", "$569", "$1,020"] CR [ Select ] ["Bank Errors", "Interest Income", "Bank Service Charges", "Interest Expense", "Cash"] [ Select ] ["$30", "$852", "$569", "$300", "$1,030"] andDR [ Select ] ["Interest Expense", "Bank Service Charges", "Notes Receivable", "Cash", "Interest Income"] [ Select ] ["$852", "$300", "$569", "$1,000", "$1,020"] CR [ Select ] ["Outstanding Checks", "Notes Receivable", "Bank Errors", "Interest Expense", "Deposits in Transit"] $1,000CR [ Select ] ["Outstanding Checks", "Deposits in Transit", "Cash", "Bank Errors", "Interest Income"] [ Select ] ["$20", "$852", "$569", "$300", "$1,020"]

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Answered: The bank reconciliation shows the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The bank reconciliation shows the following adjustments:

Deposits in transit: $852
Notes receivable collected by bank: $1,000; interest: $20
Outstanding checks: $569
Error by bank: $300
Bank charges: $30

Using the following accounts:

Bank Errors	Bank Service Charges	Cash	Deposits in Transit
Interest Expense	Interest Income	Notes Receivable	Outstanding Checks

prepare the two correcting journal entries:

DR	[ Select ] ["Cash", "Bank Service Charges", "Interest Income", "Bank Errors", "Interest Expense"]	[ Select ] ["$300", "$852", "$30", "$569", "$1,020"]
CR	[ Select ] ["Bank Errors", "Interest Income", "Bank Service Charges", "Interest Expense", "Cash"]	[ Select ] ["$30", "$852", "$569", "$300", "$1,030"]

and

DR	[ Select ] ["Interest Expense", "Bank Service Charges", "Notes Receivable", "Cash", "Interest Income"]	[ Select ] ["$852", "$300", "$569", "$1,000", "$1,020"]
CR	[ Select ] ["Outstanding Checks", "Notes Receivable", "Bank Errors", "Interest Expense", "Deposits in Transit"]	$1,000
CR	[ Select ] ["Outstanding Checks", "Deposits in Transit", "Cash", "Bank Errors", "Interest Income"]	[ Select ] ["$20", "$852", "$569", "$300", "$1,020"]

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