How much interest revenue earned on bank balance


Response to the following problem:

The Cash account of Good Times Video Productions reported a balance of $2,280 at May 31. Included were outstanding checks totaling $900 and a May 31 deposit in transit of $200. The bank statement, which came from Park Cities Bank, listed a May 31 balance of $3,600. Included in the bank balance was a May 30 collection of $630 on account from Kelly Brooks, a Good Times customer who pays the bank directly. The bank statement also shows a $20 service charge and $10 of interest revenue that Good times earned on its bank balance.

Prepare Good Times' bank reconciliation at May 31.

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Accounting Basics: How much interest revenue earned on bank balance
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