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When Preparing the Monthly Bank Reconciliation, Mayhew Company's Accountant Found

Question 22

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When preparing the monthly bank reconciliation, Mayhew Company's accountant found the following adjustments to make to either the unadjusted book balance or unadjusted bank balance:
Deposits in transit $1,200 NSF check175 Bank service charge 50 Outstanding checks 1,060 Credit memo for interest 80\begin{array}{llr} \text {Deposits in transit } &\$1,200\\ \text { NSF check} &175\\ \text { Bank service charge } &50\\ \text { Outstanding checks } &1,060\\ \text { Credit memo for interest } &80\\\end{array}
Required:Indicate how each of the required adjusting entries impacts the company's financial statements.
When preparing the monthly bank reconciliation, Mayhew Company's accountant found the following adjustments to make to either the unadjusted book balance or unadjusted bank balance: \begin{array}{llr} \text {Deposits in transit } &\$1,200\\ \text { NSF check} &175\\ \text { Bank service charge } &50\\ \text { Outstanding checks } &1,060\\ \text { Credit memo for interest } &80\\ \end{array} Required:Indicate how each of the required adjusting entries impacts the company's financial statements.

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