Why is it necessary to journalize transactions from the bank reconciliation? List two examples of items that need to be journalized.
What will be an ideal response?
The bank reconciliation is an accountant's tool separate from the journals and ledgers. It does not account for transactions in the journal. To get the transactions into the accounts, journal entries must be made and posted to the ledger. All items on the book side of the bank reconciliation require journal entries. These items include accounts or notes receivable collected by the bank, interest earned on bank balance, bank service charge, NSF checks, and EFT receipts or payments.
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