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Below, preceded by identifying letters, are seven items that would cause Xavier Sales Company's book balance of cash to differ from its bank statement balance. (a) A customer's cheque returned by the bank marked "Not Sufficient Funds." A customer's cheque returned by the bank marked "Not Sufficient Funds." (b)A cheque listed as outstanding on the previous month's reconciliation that is still outstanding. (c) A service charge made by the bank. (d)A deposit consisting solely of cheques which was mailed to the bank on the last day of November and is unrecorded on the November bank statement. (e)A cheque paid by the bank at its correct $200 amount but recorded in error in the Cheque Register at $20. (f) An unrecorded credit memorandum indicating the bank had collected a note receivable for Xavier Sales Company and deposited the proceeds in the company's account. (9)A cheque written but not yet paid or returned by the bank.

Below, preceded by identifying letters, are seven items that would cause Xavier Sales Company's book balance of cash to differ from its bank statement balance. (a) A customer's cheque returned by the bank marked "Not Sufficient Funds." A customer's cheque returned by the bank marked "Not Sufficient Funds." (b)A cheque listed as outstanding on the previous month's reconciliation that is still outstanding. (c) A service charge made by the bank. (d)A deposit consisting solely of cheques which was mailed to the bank on the last day of November and is unrecorded on the November bank statement. (e)A cheque paid by the bank at its correct $200 amount but recorded in error in the Cheque Register at $20. (f) An unrecorded credit memorandum indicating the bank had collected a note receivable for Xavier Sales Company and deposited the proceeds in the company's account. (9)A cheque written but not yet paid or returned by the bank.

Financial Accounting
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter8: Sarbanes-oxley, Internal Control, And Cash
Section: Chapter Questions
Problem 19E
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Below, preceded by identifying letters, are seven items that would cause Xavier Sales Company's book balance of cash to differ from its bank statement balance. (a) A customer's cheque returned by the bank marked "Not Sufficient Funds." A customer's cheque returned by the bank marked "Not Sufficient Funds." (b)A cheque listed as outstanding on the previous month's reconciliation that is still outstanding. (c) A service charge made by the bank. (d)A deposit consisting solely of cheques which was mailed to the bank on the last day of November and is unrecorded on the November bank statement. (e)A cheque paid by the bank at its correct $200 amount but recorded in error in the Cheque Register at $20. (f) An unrecorded credit memorandum indicating the bank had collected a note receivable for Xavier Sales Company and deposited the proceeds in the company's account. (g) A cheque written but not yet paid or returned by the bank. Indicate where each item would appear on Xavier Sales Company's bank reconciliation by putting an "X" in the correct column below. Bank Ledger(Book) ADD DEDUCT ADD DEDUCT (a) (b) (c) (d) (e) (f) (g)
Transcribed Image Text:Below, preceded by identifying letters, are seven items that would cause Xavier Sales Company's book balance of cash to differ from its bank statement balance. (a) A customer's cheque returned by the bank marked "Not Sufficient Funds." A customer's cheque returned by the bank marked "Not Sufficient Funds." (b)A cheque listed as outstanding on the previous month's reconciliation that is still outstanding. (c) A service charge made by the bank. (d)A deposit consisting solely of cheques which was mailed to the bank on the last day of November and is unrecorded on the November bank statement. (e)A cheque paid by the bank at its correct $200 amount but recorded in error in the Cheque Register at $20. (f) An unrecorded credit memorandum indicating the bank had collected a note receivable for Xavier Sales Company and deposited the proceeds in the company's account. (g) A cheque written but not yet paid or returned by the bank. Indicate where each item would appear on Xavier Sales Company's bank reconciliation by putting an "X" in the correct column below. Bank Ledger(Book) ADD DEDUCT ADD DEDUCT (a) (b) (c) (d) (e) (f) (g)
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