Textbook Problem

Items on company’s bank statement

The following items may appear on a bank statement:

1. 1. Bank correction of an error from posting another customer’s check (disbursement) to the company’s account
2. 2. EFT deposit
3. 3. Loan proceeds
4. 4. NSF check

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

Item No.

Appears on the Bank Statement as a Debit or Credit Memo

Increases or Decreases the Balance of the Company’s Bank Account