Balance doesn't require an adjusting entry.
Cash
After a bank reconciliation is prepared, prepare an adjusting journal entry on the company's books for all items that were recorded by the bank, but not recorded in the books. These usually include:Corrections made by the bankBank feesInterest income recorded by the bankInsufficient fund (NSF) checksElectronic Fund Transfer (EFT) deposits made to the bank account, but not recorded in the books.
Reversing entry can be make to reverse any entry whether it is actual transaction entry or any adjusting entry.
This is adjusting entry for Accrued Expenses in the current accounting period, where you debit adjusting entry on expenses (Utility Expenses) account and credit adjusting entry on liabilities (Utilities Payable) account.
If adjusting entry not made then profit will be overstated while the expenses will be understated.
Examples of items on a bank reconciliation that would require an adjusting entry on the company's books include bank fees, NSF checks, interest income, deposits in transit, and outstanding checks. These items may not have been recorded in the company's books at the time of the reconciliation, so adjusting entries are needed to bring the books into agreement with the bank statement.
People will not be able to know which of the following bank reconciliation items would not result in an adjusting entry without knowing what the following reconciliation is. This information should be included.
Cash
After a bank reconciliation is prepared, prepare an adjusting journal entry on the company's books for all items that were recorded by the bank, but not recorded in the books. These usually include:Corrections made by the bankBank feesInterest income recorded by the bankInsufficient fund (NSF) checksElectronic Fund Transfer (EFT) deposits made to the bank account, but not recorded in the books.
Reversing entry can be make to reverse any entry whether it is actual transaction entry or any adjusting entry.
This is adjusting entry for Accrued Expenses in the current accounting period, where you debit adjusting entry on expenses (Utility Expenses) account and credit adjusting entry on liabilities (Utilities Payable) account.
If adjusting entry not made then profit will be overstated while the expenses will be understated.
1 - General journal entry2 - Adjusting journal entry3 - Month end adjusting entry
Adjusting entry as follows: [Debit] Cash / bank [Credit] Accrued commission
Unearned rent would likely be included in an accrual adjusting entry.
CASH!
what is a corrective entry? what is a corrective entry?