Appendix I
Review Exercise Solutions
427
Review Exercise 2
JOURNAL
Page 1
Date
Account Title and Explanation
Debit Credit
2016
Jun 30 Cash
5
Interest Revenue
5
To record deposit of interest earned
Jun 30 Accounts Receivable
2,000
Cash
2,000
Reinstate accounts receivable for NSF cheque
Jun 30 NSF Charges Expense
6
Cash
6
To record NSF charges
Jun 30 Bank Charges Expense
14
Cash
14
To record payment of bank service charges
Martin Furniture
Bank Reconciliation
June 30, 2016
Explanation
Ledger
Bank
Opening Balance
4,815
2,000
Add: Interest on bank account
5
Add: Outstanding deposit—June 29
1,300
Less: NSF cheque
(2,000)
Less: NSF Charge
(6)
Less: service charge
(14)
Less: outstanding cheque
(500)
Reconciled Balance
2,800
2,800
