Problem:
Habo Corporation is preparing a bank reconciliation and has identified the following potential reconciling items.
- Deposit in transit $6,348.
- Bank service charges $39.
- Interest credited to Horton's account $49.
- Outstanding checks $7,620.
- NSF check returned $497.
Required:
Question: Prepare any entries necessary to make Horton's accounting records correct and complete.
Note: Be sure to show how you arrived at your answer.