[bigmoomoo]

1. When doing the bank reconciliation for the company, you discover a difference of $15.83 consisting of a bad check charge of $35, interest on the charge of $0.83, and an error you made in recording a check for supplies for $20. What are the accounts affected by the general journal entry to correct this imbalance?

I tried the following entry:

Account name

Bank Service Charge = DR $35.00
Interest expense = DR $ 0.83
Accounts payable = CR $15.83
Supplies = CR $20.00

[midwestguy72]

This question isn't the most clear by any means. If there is a $15.83 difference between your bank statement balance and book balance, this amount should be credited to cash. You are correct to debit the expense accounts for the bad check and interest charges. The remaining $20 credit should go to supplies or supplies expense, depending on the account you debited when you initially recorded the purchase.

I wish the question was clearer, but this is how I would journalize it:

Service charge (bad check) 35.00
Interest expense .83
Supplies 20.00
Cash 15.83