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A company's Cash account shows a balance of $5,600 at the end of the month. Comparing the company's Cash account with the monthly bank statement reveals several additional cash transactions such as deposits outstanding ($1,280), checks outstanding ($2,420), bank service fees ($44), an NSF check from a customer ($240), a customer's note receivable collected by the bank ($510), and interest earned ($67). Prepare the necessary entries to adjust the balance of cash.1. Record the entries that increase cash.2. Record the entries that decrease cash.

Respuesta :

TomShelby

Answer:

cash               750 debit

     note receivable         510 credit

    NSF check                 240 credit

-- to record increases of cash from reconciliation --

bank fees expense    44 debit

                       cash                    44 credit

-- to record decreases of cash from reconciliation --

Explanation:

cash account     5,600

bank fees               (44)

NSF                        240

bank collected      510

adjusted cash:   6,306

We adjust based on the unknow information for the company like fees, collection and NFS found. we could also adjust for mistake but for this time, there isn't any.

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