Flynn Company\'s monthly bank statement showed the ending balance of cash of $18

Question

Flynn Company's monthly bank statement showed the ending balance of cash of $18,500. The bank reconciliation for the period showed an adjustment for a deposit in transit of $1,500, outstanding checks of $2,000, a NSF check of $700, bank service charges of $30 and the EFT from a customer in payment of the customer's account of $1,500. Use the information above to answer the following question. What is the up-to-date ending Cash balance? Use the information above to answer the following question. What journal entry should be recorded by Flynn Company for the NSF check returned? Debit Accounts Receivable and credit Cash for $700 Debit Cash and credit Accounts Receivable for $700 Debit Cash and credit Accounts Payable for $700 No journal entry is necessary for this item.

Explanation / Answer

Flynn Company Details Amt $ Month end balance as per bank statement            18,500 Add; Deosit in transit               1,500 Less: Outstanding check            (2,000) Adjusted cash balance as per bank            18,000 a Up to date ending cash balance =$18000 b JV for NSF check returned by Flynn co would be Accounts Receivable Dr                    700 Cash Cr                  700

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