For the following transactions, prepare journal entries needed to adjust the company's books. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) a. Outstanding checks of $13,700. b. Bank service charge of $55. c. Deposit in transit of $4,000. d. Interest earned of $22.

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Niki

Business

27 August, 13:47

For the following transactions, prepare journal entries needed to adjust the company's books. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) a. Outstanding checks of $13,700. b. Bank service charge of $55. c. Deposit in transit of $4,000. d. Interest earned of $22.

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Lawrence Chang · Answer 1

The journal entries are as follows

a. For outstanding charges

No journal entry is required

b. For bank service charges

Office expenses Dr $55

To Cash $55

(Being the bank service charges are paid)

c. For deposit in transit

No journal entry is required

d. For interest earned

Cash Dr $22

To Interest revenue $22

(Being the interest earned is recorded)