Question

At the statment date, the bank shows a balance in the facility's operating checking account of $10,000. On that same statement date, the facility's accounting records have a cash balance in the operating account of $10,525 and has recorded a deposit of $1,000 that the bank does not show. Also, the facility has issued three checks, in the amounts of $100, $200, and $300, that the bank does not show as cleared. For that month, the bank has credited intrest to the account in the amount of $25 and has charged bank service fees of $50. Credit card service fees for the month total $100. All payments from third-party payers on the bank statement agree to the facility's accounting records. Prepare the journal entry to record intrest and charges, and complete the bank reconciliation to determine the adjusted cash balance per the facility's accouting records.

Answer 1

Bank reconciliation :

Unadjusted bank balance	10000
Add: Deposit in transit	1000
	11000
Less; Outstanding checks	-600
Adjusted balance as per book	10400
Unadjusted balance as per book	10525
Add; Interest	25
	10550
Less: Bank service fees	50
Less: Credit Card fees	100
Adjusted balance as per book	10400

Journal entry

Date	account and explanation	debit	credit
	Cash	25
	Interest revenue		25
	(To record interest)
	Bank service fees	50
	Credit card fees	100
	Cash		150
	(TO record bank service charge)