Acompany's cash account shows a balance of $3,400 at the end of the month. comparing the company's cash account with the monthly bank statement reveals several additional cash transactions such as bank service fees ($60), an nsf check from a customer ($370), a customer's note receivable collected by the bank $(2,000), and interest earned $(150). prepare the necessary entries to adjust the balance of cash. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)

Balance Cash Adjusted CASH  $5,860

Explanation:

CASH  $3,400    

bank service fees ($60)  >>> The banks' fees must be record as expenses.

Bank Expenses  $60Debit  

CASH  $60Credit

NSF check from a customer ($370) >>> A collection made to a client, it means we have a balance in the accounts receivable.  

CASH  $370Debit  

Accounts Receivables  $370Credit

Customer's note receivable collected by the bank $(2,000)  >>> A collection of a note receivable made by the bank, it means we have a balance as note receivable in the balance sheets.    

CASH  $2000Debit  

Note Receivable  $2000Credit

interest earned $(150)>>> The interest earned had to be recognize in the income statement as income statement.    

CASH  $150Debit  

Interest Income  $150Credit

CASH  $5860    

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