Dance Town Academy The items listed below were identified while preparing a bank reconciliation for the company's checking account as of March 31,2013.
$\begin{array}{ll}
\text { Cash balance according to the general ledger } & ? \
\text { Bank statement balance } & \$ 18,500 \
\text { Outstanding checks } & 2,700 \
\text { Customer's bounced check } & 350 \
\text { Bank service charges } & 100 \
\text { Deposits in transit } & 1,000 \
\text { Interest earned on the checking account } & 60
\end{array}$
-Refer to Dance Town Academy.How will the interest earned on the checking account be handled on a bank reconciliation?

Question

Dance Town Academy The items listed below were identified while preparing a bank reconciliation for the company's checking account as of March 31,2013.
$\begin{array}{ll}
\text { Cash balance according to the general ledger } & ? \
\text { Bank statement balance } & \$ 18,500 \
\text { Outstanding checks } & 2,700 \
\text { Customer's bounced check } & 350 \
\text { Bank service charges } & 100 \
\text { Deposits in transit } & 1,000 \
\text { Interest earned on the checking account } & 60
\end{array}$ 
-Refer to Dance Town Academy.How will the interest earned on the checking account be handled on a bank reconciliation?

Quizplus · Accepted Answer

Interest earned on the checking account should be added to the balance from the company records because it is a deposit that has not been recorded by the bank yet.

Dance Town Academy the Items Listed Below Were Identified While