Question

Snug as a Bug Security Systems' bank reconciliation follows. (Click the icon to view the bank raconciliation report) Included in the bank balance is a collection of $660 on account from Nicole Lee, a Snug as a Bug customer who pays the bank directly. Joumalize the company's transactions that arise from the bank reconciliation. Include an explanation with each entry Reference Credit Date Accounts and Explanation Debit Dec. 31 Snug as a Bug Security Systems Bank Reconciliation December 31, 2018 Bank: Balance, December 31, 2018 $ 3,690 Accounts and Explanatlon Date Debit Credit 400 ADD: Deposit in transit Dec 31 4,090 900 900 LESS: Outstanding checks 3,190 Adjusted bank balance, December 31, 2018 Вook: Balance, December 31, 2018 $ 2,540 Accounts and Explanation Date Debit Credit ADD: Bank collection 660 Dec. 31 20 680 Interest revenue 3,220 30 30 LESS: Service charge $ 3,190 Adjusted book balance, December 31, 2018

Answer 1

Solution:

Journal Entries - Snug as a Bug security system
Date	Particulars	Debit	Credit
31-Dec	Cash Dr	$660.00
	To Accounts receivables		$660.00
	(To record bank collection)
31-Dec	Cash Dr	$20.00
	To Interest revenue		$20.00
	(To record interest revenu)
31-Dec	Miscellaneous expense Dr	$30.00
	To Cash		$30.00
	(Being service charge debited by bank)