Which of the following items found on a bank reconciliation does NOT require an adjusting entry?
A)Interest earned
B)A bill receivable collected by the bank
C)A bank service charge
D)Deposits in transit

Question

Quizplus · Accepted Answer

Deposits in transit are already recorded in the company's books and just need to be matched up with the bank statement, so they do not require an adjusting entry. The other items listed (interest earned, a bill receivable collected by the bank, and a bank service charge) all require adjusting entries to reconcile the bank statement with the company's records.

Which of the Following Items Found on a Bank Reconciliation