All of the following bank reconciliation items would result in an adjusting journal entry on the company's books except:
A)interest earned.
B)deposits in transit.
C)service charge.
D)a customer's cheque returned NSF.

Question

Quizplus · Accepted Answer

Deposits in transit are amounts that have been received and recorded by the company but not yet recorded by the bank. They do not require an adjusting journal entry on the company's books because they have already been accounted for; they only need to be reconciled with the bank's records.

All of the Following Bank Reconciliation Items Would Result in an Adjusting