Ten items that may or may not be involved in the bank reconciliation process for April are listed in the table shown below: Complete the table shown below, identifying where each item should be included on a bank reconciliation prepared for the month of April. Indicate whether the item should be added to, or deducted from, the bank or the books. If the item should not be included in the bank reconciliation, indicate “Not Applicable” in each of the bank and books column. In addition, if an item only affects the bank, insert Not Applicable in the books column. Likewise, if it only affects the books, insert Not Applicable in the bank column. Finally, indicate whether the item will require a journal entry on the company books by indicating “yes” or “no” in the last column. Item Bank Books Adjusting Entry Required 1. Deposits in transit at the end of April select an option Deduct from BankNot ApplicableAdd to Bank select an option Not ApplicableDeduct from BookAdd to Book select an option NoYes 2. Deposits in transit at the beginning of April that cleared the bank in April select an option Deduct from BankNot ApplicableAdd to Bank select an option Add to BookDeduct from BookNot Applicable select an option NoYes 3. Outstanding cheques at the beginning of April that cleared the bank in April select an option Deduct from BankNot ApplicableAdd to Bank select an option Deduct from BookNot ApplicableAdd to Book select an option YesNo 4. Outstanding cheques at the end of April select an option Not ApplicableDeduct from BankAdd to Bank select an option Not ApplicableAdd to BookDeduct from Book select an option YesNo 5. Bank service charges select an option Add to BankDeduct from BankNot Applicable select an option Add to BookNot ApplicableDeduct from Book select an option NoYes 6. Deposit of $400 made in error by the bank to the company’s account select an option Add to BankNot ApplicableDeduct from Bank select an option Add to BookNot ApplicableDeduct from book select an option YesNo 7. Cheque written for $250 recorded in error as $520 on the books select an option Add to BankDeduct from BankNot Applicable select an option Not ApplicableAdd to BookDeduct from Book select an option NoYes 8. NSF cheque received from customer select an option Not ApplicableAdd to BankDeduct from Bank select an option Add to BookNot ApplicableDeduct from Book select an option NoYes 9. EFT collection on account not previously recorded by company select an option Not ApplicableDeduct from BankAdd to Bank select an option Add to BookDeduct from BookNot Applicable select an option NoYes 10. Interest earned on bank account select an option Add to BankNot ApplicableDeduct from Bank select an option Deduct from BookAdd to BookNot Applicable select an option NoYes

Ten items that may or may not be involved in the bank reconciliation process for April are listed in the table shown below: Complete the table shown below, identifying where each item should be included on a bank reconciliation prepared for the month of April. Indicate whether the item should be added to, or deducted from, the bank or the books. If the item should not be included in the bank reconciliation, indicate “Not Applicable” in each of the bank and books column. In addition, if an item only affects the bank, insert Not Applicable in the books column. Likewise, if it only affects the books, insert Not Applicable in the bank column. Finally, indicate whether the item will require a journal entry on the company books by indicating “yes” or “no” in the last column. Item Bank Books Adjusting Entry Required 1. Deposits in transit at the end of April select an option Deduct from BankNot ApplicableAdd to Bank select an option Not ApplicableDeduct from BookAdd to Book select an option NoYes 2. Deposits in transit at the beginning of April that cleared the bank in April select an option Deduct from BankNot ApplicableAdd to Bank select an option Add to BookDeduct from BookNot Applicable select an option NoYes 3. Outstanding cheques at the beginning of April that cleared the bank in April select an option Deduct from BankNot ApplicableAdd to Bank select an option Deduct from BookNot ApplicableAdd to Book select an option YesNo 4. Outstanding cheques at the end of April select an option Not ApplicableDeduct from BankAdd to Bank select an option Not ApplicableAdd to BookDeduct from Book select an option YesNo 5. Bank service charges select an option Add to BankDeduct from BankNot Applicable select an option Add to BookNot ApplicableDeduct from Book select an option NoYes 6. Deposit of $400 made in error by the bank to the company’s account select an option Add to BankNot ApplicableDeduct from Bank select an option Add to BookNot ApplicableDeduct from book select an option YesNo 7. Cheque written for $250 recorded in error as $520 on the books select an option Add to BankDeduct from BankNot Applicable select an option Not ApplicableAdd to BookDeduct from Book select an option NoYes 8. NSF cheque received from customer select an option Not ApplicableAdd to BankDeduct from Bank select an option Add to BookNot ApplicableDeduct from Book select an option NoYes 9. EFT collection on account not previously recorded by company select an option Not ApplicableDeduct from BankAdd to Bank select an option Add to BookDeduct from BookNot Applicable select an option NoYes 10. Interest earned on bank account select an option Add to BankNot ApplicableDeduct from Bank select an option Deduct from BookAdd to BookNot Applicable select an option NoYes

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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	Item	Bank	Books	Adjusting Entry Required
1.	Deposits in transit at the end of April	select an option Deduct from BankNot ApplicableAdd to Bank	select an option Not ApplicableDeduct from BookAdd to Book	select an option NoYes
2.	Deposits in transit at the beginning of April that cleared the bank in April	select an option Deduct from BankNot ApplicableAdd to Bank	select an option Add to BookDeduct from BookNot Applicable	select an option NoYes
3.	Outstanding cheques at the beginning of April that cleared the bank in April	select an option Deduct from BankNot ApplicableAdd to Bank	select an option Deduct from BookNot ApplicableAdd to Book	select an option YesNo
4.	Outstanding cheques at the end of April	select an option Not ApplicableDeduct from BankAdd to Bank	select an option Not ApplicableAdd to BookDeduct from Book	select an option YesNo
5.	Bank service charges	select an option Add to BankDeduct from BankNot Applicable	select an option Add to BookNot ApplicableDeduct from Book	select an option NoYes
6.	Deposit of $400 made in error by the bank to the company’s account	select an option Add to BankNot ApplicableDeduct from Bank	select an option Add to BookNot ApplicableDeduct from book	select an option YesNo
7.	Cheque written for $250 recorded in error as $520 on the books	select an option Add to BankDeduct from BankNot Applicable	select an option Not ApplicableAdd to BookDeduct from Book	select an option NoYes
8.	NSF cheque received from customer	select an option Not ApplicableAdd to BankDeduct from Bank	select an option Add to BookNot ApplicableDeduct from Book	select an option NoYes
9.	EFT collection on account not previously recorded by company	select an option Not ApplicableDeduct from BankAdd to Bank	select an option Add to BookDeduct from BookNot Applicable	select an option NoYes
10.	Interest earned on bank account	select an option Add to BankNot ApplicableDeduct from Bank	select an option Deduct from BookAdd to BookNot Applicable	select an option NoYes

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