Textbook Problem

Items on company's bank statement

The following item may appear on a bank statement:

1. 1. Bank correction of an error from recording a $6,200 deposit as $2,600
2. 2. EFT payment
3. 3. Note collected for company
4. 4. Service charge

Using the following format, indicate whether each item would appear as a debit or credit memo on the bank statement and whether the item would increase or decrease the balance of the company's account:

	Appears on the
	Bank Statement as	Increases or Decreases the
	a Debit or Credit	Balance of the Company's
Item No.	Memo	Bank Account