When considering the process of preparing a bank reconciliation it\'s noted that

Question

When considering the process of preparing a bank reconciliation it's noted that under normal circumstances only one section of the analysis may generate additional entries on the books of the account holder.

Which of the following items would cause an entry on the books on the account holder after reviewing and preparing their bank reconciliation?

$1,200 of outstanding checks that have not cleared the bank yet.

A $66 check written to Builder's Depot that hasn't cleared the bank yet.

$8.65 worth of interest deposited into the account of the account holder by the bank on a maturing Certificate of Deposit. This is the first time that the account holder is aware of the interest deposit for the semiannual period.

$650 of deposits in transit that have not yet been recorded by the bank, but were dropped off in the deposit box last night.

$1,200 of outstanding checks that have not cleared the bank yet.

A $66 check written to Builder's Depot that hasn't cleared the bank yet.

$8.65 worth of interest deposited into the account of the account holder by the bank on a maturing Certificate of Deposit. This is the first time that the account holder is aware of the interest deposit for the semiannual period.

$650 of deposits in transit that have not yet been recorded by the bank, but were dropped off in the deposit box last night.

Explanation / Answer

Answer is C. $ 8.65 worth of interest deposited into the account of the account holder by the bank on a maturity certificate of deposit. This is the first time that the account holder is aware of the interest deposit for the semiannual period.

Explanation:

This the only entry from the above list to be recorded in books of account and the journal entry needs to be passed is as follows:

Cash account Dr. $ 8.65

Interest revenue account $ 8.65

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