The month-end journal entry to adjust its cash balance to agree to the adjusted book balance should include a: a) debit to interest revenue for $125b) credit to service revenue for $4000c) credit to bank service charge expense for $35d) credit to note receivable for $2500 Item Descriptiona. The July 31 balance per the bank statement is $5,000.b. The unadjusted book balance on July 31 is $4,670.C. Interest earned from the bank amounted to $25.d. Bank service charges amounted to $35.e. Deposits in transit amount to $4,000.f. There was an NSF check from one of Wells's customers for $900.g. Outstanding checks total $2,700.h.1.A collection on an interest-bearing note receivable by the bank on behalf of the company amountedto $2,600. Out of the $2,600 collected, $2,500 was principal, and $100 was for interest earned. Theinterest amount was not previously accrued.The bank incorrectly deducted $60 from Wells' bank account.1. After preparing the bank reconciliation for July on your scrap paper, the adjusted book balance onJuly 31 should be:A. $6,690B. $6,360C. $6,240D. $6,300E. $6,420F. None of the above

Ideally cash balance as per cashbook must reconcile with bank balance as per bank statement. In case…

Answered: The month-end journal entry to adjust…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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The month-end journal entry to adjust its cash balance to agree to the adjusted book balance should include a: a) debit to interest revenue for $125 b) credit to service revenue for $4000 c) credit to bank service charge expense for $35 d) credit to note receivable for $2500

Item Description
a. The July 31 balance per the bank statement is $5,000.
b. The unadjusted book balance on July 31 is $4,670.
C. Interest earned from the bank amounted to $25.
d. Bank service charges amounted to $35.
e. Deposits in transit amount to $4,000.
f. There was an NSF check from one of Wells's customers for $900.
g. Outstanding checks total $2,700.
h.
1.
A collection on an interest-bearing note receivable by the bank on behalf of the company amounted
to $2,600. Out of the $2,600 collected, $2,500 was principal, and $100 was for interest earned. The
interest amount was not previously accrued.
The bank incorrectly deducted $60 from Wells' bank account.
1. After preparing the bank reconciliation for July on your scrap paper, the adjusted book balance on
July 31 should be:
A. $6,690
B. $6,360
C. $6,240
D. $6,300
E. $6,420
F. None of the above

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