select all that apply the bank reconciliation of abc co. is provided below. demonstrate the required…

select all that apply the bank reconciliation of abc co. is provided below. demonstrate the required adjusting entries needed to update the cash account in the general ledger by selecting the correct entries below. bank balance $1,005 book balance $1,250 add: deposit in transit 300 add: interest earned 50 less: outstanding checks 185 less: nsf check - j. roberts 180 debit interest revenue $50 and credit cash $50. debit nsf expense $180 and credit cash $180. debit cash $50 and credit interest revenue $50. debit accounts receivable $180 and credit cash $180. debit cash $300 and credit revenues $300.

select all that apply the bank reconciliation of abc co. is provided below. demonstrate the required adjusting entries needed to update the cash account in the general ledger by selecting the correct entries below. bank balance $1,005 book balance $1,250 add: deposit in transit 300 add: interest earned 50 less: outstanding checks 185 less: nsf check - j. roberts 180 debit interest revenue $50 and credit cash $50. debit nsf expense $180 and credit cash $180. debit cash $50 and credit interest revenue $50. debit accounts receivable $180 and credit cash $180. debit cash $300 and credit revenues $300.

Answer

Explanation:

Step1: Record interest earned

When interest is earned, cash increases and interest revenue is recognized. So, debit Cash and credit Interest Revenue. The amount of interest earned is $50. So the entry is Debit Cash $50 and credit Interest Revenue $50.

Step2: Record NSF check

An NSF (non - sufficient funds) check means the customer's payment that was previously recorded as a receipt is now uncollectible. We need to reduce cash and increase accounts receivable. So the entry is Debit Accounts Receivable $180 and credit Cash $180.

Answer:

C. Debit Cash $50 and credit Interest Revenue $50. D. Debit Accounts Receivable $180 and credit Cash $180.