BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

Solutions

Chapter
Section
BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

BANK RECONCILIATION PROCEDURES In a format similar to the following, indicate whether the action at the left will result in an addition to (+) or subtraction from (−) the ending bank balance or the ending book balance.

images

To determine

Indicate whether the action at the left will result in an addition to (+) or subtraction from () the ending bank balance or the ending book balance.

Explanation

Bank reconciliation:

Bank statement is prepared by bank. The company maintains its own records from its perspective. This is why the cash balance per bank and cash balance per books seldom agree. Bank reconciliation is the statement prepared by company to remove the differences and disagreement between cash balance per bank and cash balance per books.

Indicate whether the action at the left will result in an addition to or subtraction from the ending bank balance or the ending book balance.

TransactionEnding bank balanceEnding book balance
1. Service fee charged of $12 by the bank 

Subtracted

()

2. Outstanding checks

Subtracted

()

 
3. Error in checkbook: check recorded as $36 but was actually for $28. Added  (+)
4. NSF check deposited earlier Outstanding checks 

Subtracted

()

5. Bank credit memo advising a note was collected for us Added  (+)
6. Deposits in transit to the bank $220Added  (+) 
7

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

What is the Occupational Safety and Health Act?

Foundations of Business (MindTap Course List)

MULTIPLE IRRS AND MIRR A mining company is deciding whether to open a strip mine, which costs 2 million. Cash i...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

When is multiple regression required to explain cost behavior?

Cornerstones of Cost Management (Cornerstones Series)