Bourne Incorporated reports a cash balance at the end of the month of $2,345. A comparison of the company's cash records with the monthly bank statement reveals several additional cash transactions: bank service fees ($74), an NSF check from a customer ($240), a customer's note receivable collected by the bank ($1,200), and interest earned ($24). Required: Record the necessary entries to adjust the balance of cash. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

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Business

Mara Dalton

14 July, 19:02

Bourne Incorporated reports a cash balance at the end of the month of $2,345. A comparison of the company's cash records with the monthly bank statement reveals several additional cash transactions: bank service fees ($74), an NSF check from a customer ($240), a customer's note receivable collected by the bank ($1,200), and interest earned ($24). Required: Record the necessary entries to adjust the balance of cash. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

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Jaron Sutton · Answer 1

The journal entries are shown below:

1. Bank service fees A/c Dr $74

To Cash A/c $74

(Being bank service charges paid)

2. Accounts receivable A/c Dr $240

To Cash A/c $240

(Being NSF check is received from a customer)

3. Cash A/c Dr $1,224

To Notes receivable A/c $1,200

To Interest earned $24

(Being the notes receivable and interest earned is recorded)