At the end of the month of July you close the books of your company and received the bank statement. You are ready to start with the Adjusting journal entries and realized that a bank reconciliation must be performed.

First you collect the data from June 30th reconciliation as follows:

Balance per Bank$10,000add: Deposits in Transit$6,300deduct: Outstanding Cheques$(5,000)Balance per Books$9,600

Second you close your update your Cash and bank account with all transactions recorded before AJE and you have:

Balance July 31$11,000Deposits$8,500Cheques$6,500

Third you look at the bank statement provided by your bank and you see the following:

Balance July 31$10,280Deposits$13,000Cheques$10,000Note collected$700Bank service charge$ 50NSF cheque$1,000Interest received$180Autowithdrawals$250

Which of the following adjusting journal entries is required after the bank reconciliation has been prepared?

None of the others alternatives are correct

Dr. Cash $50 Cr. bank fees $50 (to reflect bank fees for the month)

Dr Cash $1,000 Cr. Accounts Receivables $1,000 (to reflect the NSF cheque)

Dr. Interest revenue $180 Cr. Cash $180 (to reflect interest earned on bank balance).

Dr. Phone Expenses $250 Cr. Cash $250 (to reflect the automatic payment of the phone - autowithdraw).

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