2.Below are items for October 200X that you are seeing for the first time.

a.Indicate with an X whether each item should be added to or subtracted from the bank balance, book balance, or neither (i.e., it does not affect the bank reconciliation).

Bank balance

Book balance

Not

used

Add

Deduct

Add

Deduct

a.

Interest earned on cash in the bank

b.

Bank service charge

c.

NSF check from a customer

d.

A night deposit made on October 31 when the bank was closed

e.

Checks written and mailed October 31

f.

An October 12 deposit appearing on the bank statement as made on October 13

g.

Another firm's check charged to yours

h.

Payment of a phone bill that appears on the bank statement but never recorded

i.

Collection of principal and interest on a customer's note collected by the bank

b.Prepare the journal entries to conform the ledger Cash account balance with the reconciled bank balance as of October 31. Enter just the account names; you don't have the information for the amounts. Indent credit account names.

a.

To record bank interest

b.

To record bank service charge

c.

To record NSF check returned by bank

h.

To record utility expense

i

To record N/R and interest collected by bank