Entries based on bank reconciliation Which of the reconciling items listed in Exercise 7-16 require an entry the company’s accounts? EX 7-16 Bank reconciliation Identify each of the following reconciling items as: (a) an addition to the cash balance according to the bank statement, (b) a deduction from the cash balance according to the bank statement, (c) an addition to the cash balance according to the company’s records, or (d) 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.) 1. Bank service charges, $50. 2. Check of a customer returned by bank to company because of insufficient funds, $520. 3. Check for $345 incorrectly recorded by the company as $435. 4. Check for $200 incorrectly charged by bank as $2,000. 5. Deposit in transit, $4,250. 6. Outstanding checks, $5,420. 7. Note collected by bank, $5,300.

BuyFind

Corporate Financial Accounting

15th Edition
Carl Warren + 1 other
Publisher: Cengage Learning
ISBN: 9781337398169
BuyFind

Corporate Financial Accounting

15th Edition
Carl Warren + 1 other
Publisher: Cengage Learning
ISBN: 9781337398169

Solutions

Chapter
Section
Chapter 7, Problem 7.17EX
Textbook Problem

Entries based on bank reconciliation

Which of the reconciling items listed in Exercise 7-16 require an entry the company’s accounts?

EX 7-16 Bank reconciliation

Identify each of the following reconciling items as: (a) an addition to the cash balance according to the bank statement, (b) a deduction from the cash balance according to the bank statement, (c) an addition to the cash balance according to the company’s records, or (d) 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.)

1.    Bank service charges, $50.

2.    Check of a customer returned by bank to company because of insufficient funds, $520.

3.    Check for $345 incorrectly recorded by the company as $435.

4.    Check for $200 incorrectly charged by bank as $2,000.

5.    Deposit in transit, $4,250.

6.    Outstanding checks, $5,420.

7.    Note collected by bank, $5,300.

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Chapter 7 Solutions

Corporate Financial Accounting
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