Answer:
All entries are dated August 31, 2016
1. Cash Debit $ 691
Accounts receivable Credit $ 691
To record direct collection by bank from customer.
2.Bank Service Charges Debit $ 13
Cash Credit $ 13
To record bank service charges
3. Cash Debit $ 20
Interest Income Credit $ 20
To record interest income on bank balance
4. Accounts Receivable Debit $ 45
Cash Credit $ 45
To record NSF cheque, receivable account reinstated
Explanation:
We analyze the provided data to see which transactions require an adjustment to the cash book.
Outstanding checks of $ 1,730, these represent checks which have been issued by Rampart Corp but not cashed by the payees of the checks. These transactions have been recorded in the cashbook and no further adjustment is required.
Deposit of $ 400 not reflected in bank statement, this normally represent month end collections which is banked in the subsequent month. the collections when received are recorded in the cash book and no further action is required.
The other 4 transactions i.e direct collection by bank, NSF cheque, interest revenue and bank service charges all have be adjusted in the cash book.
