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Included in the bank balance is a collection of $510 on account from Jane Lindsey, a Safety customer who pays the bank directly

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Included in the bank balance is a collection of $510 on account from Jane Lindsey, a Safety customer who pays the bank directly. Journalize the company's transactions that arise from the bank reconciliation. Include an explanation with each entry. 
Journalize the transactions in the order presented in the bank reconciliation. (Reco d debits first, then credits. Select the explanation on the last line of the journal entry table.) 
Date 
Dec. 31 
Accounts and Explanation 
'Cash 
Accounts Receivable 
Collection on account 
Debit 
Credit 
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Safety Security Systems Bank Reconciliation December 31, 2018 
Bank: Balance, December 31, 2018 $ 4,730 ADD: Deposit in transit 300 5,030 LESS: Outstanding checks $ 2,000 2,000 Adjusted bank balance, December 31, 2018 $ 3.030 Book: Balance, December 31, 2018 $ 2,530 ADD: Bank collection 510 Interest revenue 20 530 3.060 LESS: Service charge 30 30 Adjusted book balance, December 31, 2018 $ 3.030 
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The Cash account of Gate City Security Systems reported a balance of $2,580 at December 31, 2018. There were outstanding checks totaling $1,200 and a December 31 deposit in transit of $100. The bank statement, which came from Tri Cities Bank, listed the December 31 balance of $4,320. Included in the bank balance was a collection of $650 on account from Jane Lindsey, a Gate City customer who pays the bank directly. The bank statement also shows a $20 service charge and $10 of interest revenue that Gate City earned on its bank balance. Prepare Gate City's bank reconciliation at December 31. 
Gate City Security Systems Bank Reconciliation December 31, 2018 
Bank: 
Balance, December 31, 2018 
ADD: 
LESS: 
Adjusted bank balance, December 31, 2018 Book: Balance, December 31, 2018 ADD: 
LESS: 
Adjusted book balance, December 31, 2018 
 

For each timing difference listed, identify whether the difference would be reported on the book side of the reconciliation or the bank side of the reconciliation. In addition, identify whether the difference would be an addition or subtraction. 
Timing difference 
a. Deposit in transit b. Bank collection c. Debit memorandum from bank d. EFT cash receipt e. Outstanding checks 1. $1,000 deposit erroneously recorded by the bank as $100 g. Service charges h. Interest revenue i. $2,500 cash payment for rent expense erroneously recorded by the business as $250 j. Credit memorandum from bank 
Is it an Is book or bank addition or affected? subtraction? 
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