When preparing the monthly bank reconciliation, Mayhew Company's accountant found the following adjustments to make to either the unadjusted book balance or unadjusted bank balance:
$\begin{array}{llr}
\text {Deposits in transit } &\$1,200\
\text { NSF check} &175\
\text { Bank service charge } &50\
\text { Outstanding checks } &1,060\
\text { Credit memo for interest } &80\
\end{array}$
Required:Indicate how each of the required adjusting entries impacts the company's financial statements.

Question

When preparing the monthly bank reconciliation, Mayhew Company's accountant found the following adjustments to make to either the unadjusted book balance or unadjusted bank balance:
 $\begin{array}{llr}
  \text {Deposits in transit  } &\$1,200\
 \text {  NSF check} &175\
 \text { Bank service charge } &50\
 \text { Outstanding checks } &1,060\
 \text { Credit memo for interest } &80\
\end{array}$
 Required:Indicate how each of the required adjusting entries impacts the company's financial statements.

Quizplus · Accepted Answer

The Answer of When preparing the monthly bank reconciliation, Mayhew Company's accountant found the following adjustments to make to either the unadjusted book balance or unadjusted bank balance:
 $\begin{array}{llr}
  \text {Deposits in transit  } &\$1,200\
 \text {  NSF check} &175\
 \text { Bank service charge } &50\
 \text { Outstanding checks } &1,060\
 \text { Credit memo for interest } &80\
\end{array}$
 Required:Indicate how each of the required adjusting entries impacts the company's financial statements.

When Preparing the Monthly Bank Reconciliation, Mayhew Company's Accountant Found