Bourne Incorporated reports a cash balance at the end of the month of $2,100. A

Question

Bourne Incorporated reports a cash balance at the end of the month of $2,100. A comparison of the company's cash records with the monthly bank statement reveals several additional cash transactions: bank service fees ($75), an NSF check from a customer ($250), a customer

Bourne Incorporated reports a cash balance at the end of the month of $2,100. A comparison of the company's cash records with the monthly bank statement reveals several additional cash transactions: bank service fees ($75), an NSF check from a customer ($250), a customer

Explanation / Answer

Cash balance at the end of month = 2100

ADJUSTMENTS:-

LESS:-BANK SERVICE FEES = (75)

LESS:-NSF CHEQUES = (250)

ADD:-CUSTOMERS NOTE RECIEVABLE COLLECTED BY BANK = 1900

ADD:-INTEREST EARNED = 24

ADJUSTED BALANCE FOR CASH = 3699

JOURNAL ENTERIES:

1] DEBIT BANK SERVICE FEES = 75

TO CASH BOOK = 75

2]DEBIT CUSTOMER = 250

CREDIT CASH BOOK = 250

3] DEBIT CASH BOOK = 1900

CREDIT NOTES RECIEVABLE = 1900

4] DEBIT CASH BOOK = 24

CREDIT INTEREST = 24

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