If the bank reconciliation includes interest revenue,a journal entry is required which debits Cash and credits Interest revenue.

Question

Quizplus · Accepted Answer

This is because interest revenue is an income account, and when it appears in the bank reconciliation, it means that the bank has credited the company's account with interest earned. Therefore, the journal entry should debit cash (increasing the balance) and credit interest revenue (increasing the income).

If the Bank Reconciliation Includes Interest Revenue,a Journal Entry Is