Question 9

a). Prepare the journal entry for the NSF check.

b). Prepare the journal entry to record the bank service charge

c). Prepare the journal entry to record the bank interest earned.

d). Prepare the journal entry to record the collection of the note.

Vandalay Industries receives its bank statement dated May 31, 2019. The May bank statement shows a balance of $ 66,000 and the following items: Collections of $10,000 note plus $500 interest (total 10,500) NSF: Newman Check $4,500 Interest Earned on checking account $80 Bank Service Fee $25 Check #7004 cleared the bank for $470. The checkbook incorrectly recorded $740. At May 31, deposits in transit were $9,200, and outstanding checks totaled $2,700. The checking account (general ledger) balance on May 31 is $66,175