Bank Reconciliation Identify each of the following reconciling items as: an addition to the cash balance according to the bank statement a deduction from the cash balance according to the bank statement an addition to the cash balance according to the company's records a deduction from the cash balance according to the company's records (None of the transactions reported by bank debit and credit memos have been recorded by the company.) Item Treatment 1. Bank service charges, $30. 2. Check of a customer returned by bank to company because of insufficient funds, $400. 3. Check for $320 incorrectly recorded by the company as $230. 4. Check for $1,100 incorrectly charged by bank as $110. 5. Deposit in transit, $3,300. 6. Outstanding checks, $7,950. 7. Note collected by bank, $10,500.
Bank Reconciliation Identify each of the following reconciling items as: an addition to the cash balance according to the bank statement a deduction from the cash balance according to the bank statement an addition to the cash balance according to the company's records a deduction from the cash balance according to the company's records (None of the transactions reported by bank debit and credit memos have been recorded by the company.) Item Treatment 1. Bank service charges, $30. 2. Check of a customer returned by bank to company because of insufficient funds, $400. 3. Check for $320 incorrectly recorded by the company as $230. 4. Check for $1,100 incorrectly charged by bank as $110. 5. Deposit in transit, $3,300. 6. Outstanding checks, $7,950. 7. Note collected by bank, $10,500.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter7: Accounting For Cash
Section: Chapter Questions
Problem 2CE
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Question
Bank Reconciliation
Identify each of the following reconciling items as:
- an addition to the cash balance according to the bank statement
- a deduction from the cash balance according to the bank statement
- an addition to the cash balance according to the company's records
- a deduction from the cash balance according to the company's records
(None of the transactions reported by bank debit and credit memos have been recorded by the company.)
Item | Treatment |
1. Bank service charges, $30. | |
2. Check of a customer returned by bank to company because of insufficient funds, $400. | |
3. Check for $320 incorrectly recorded by the company as $230. | |
4. Check for $1,100 incorrectly charged by bank as $110. | |
5. Deposit in transit, $3,300. | |
6. Outstanding checks, $7,950. | |
7. Note collected by bank, $10,500. |
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