A table for a monthly bank reconciliation dated September 30 is given below. For each item 1 through 12, indicate whether the item should be added to or deducted from the book or bank balance, or whether it should not appear on the reconciliation. 1. NSF check from customer is returned on September 25 but not yet recorded by this company. 2 Interest earned on the September cash balance in the bank. 3. Deposit made on September 5 and processed by the bank on September 6. 4 Checks written by another depositor but charged against this company's account. 5 Bank service charge for September. 6 Checks outstanding on August 31 that cleared the bank in September Check written against the company's account and cleared by the bank, erroneously not 7 recorded by the company's recordkeeper. Principal and interest on a note receivable to this company is collected by the bank but not yet 8 recorded by the company. 9 Checks written and mailed to payees on October 2 10. Checks written by the company and mailed to payees on September 30. 11. Night deposit made on September 30 after the bank closed. 12. Special bank charge for collection of note in part 8 on this company's behalf.
A table for a monthly bank reconciliation dated September 30 is given below. For each item 1 through 12, indicate whether the item should be added to or deducted from the book or bank balance, or whether it should not appear on the reconciliation. 1. NSF check from customer is returned on September 25 but not yet recorded by this company. 2 Interest earned on the September cash balance in the bank. 3. Deposit made on September 5 and processed by the bank on September 6. 4 Checks written by another depositor but charged against this company's account. 5 Bank service charge for September. 6 Checks outstanding on August 31 that cleared the bank in September Check written against the company's account and cleared by the bank, erroneously not 7 recorded by the company's recordkeeper. Principal and interest on a note receivable to this company is collected by the bank but not yet 8 recorded by the company. 9 Checks written and mailed to payees on October 2 10. Checks written by the company and mailed to payees on September 30. 11. Night deposit made on September 30 after the bank closed. 12. Special bank charge for collection of note in part 8 on this company's behalf.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter6: Cash And Internal Control
Section: Chapter Questions
Problem 6.3E
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Transcribed Image Text:A table for a monthly bank reconciliation dated September 30 is given below. For each item 1 through 12, indicate whether the item
should be added to or deducted from the book or bank balance, or whether it should not appear on the reconciliation.
1. NSF check from customer is returned on September 25 but not yet recorded by this company.
2 Interest earned on the September cash balance in the bank.
3. Deposit made on September 5 and processed by the bank on September 6.
4 Checks written by another depositor but charged against this company's account.
5 Bank service charge for September.
6 Checks outstanding on August 31 that cleared the bank in September
Check written against the company's account and cleared by the bank, erroneously not
7
recorded by the company's recordkeeper.
Principal and interest on a note receivable to this company is collected by the bank but not yet
8
recorded by the company.
9 Checks written and mailed to payees on October 2
10. Checks written by the company and mailed to payees on September 30.
11. Night deposit made on September 30 after the bank closed.
12. Special bank charge for collection of note in part 8 on this company's behalf.
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