FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:A table for a monthly bank reconciliation dated September 30 is given below. For each item 1 through 12, indicate whether the item
should be added to or subtracted from the book or bank balance, and whether it should or should not appear on the reconciliation.
(Select the answers in the appropriate cells. Leave no cells blank. Be certain to select "NA" in fields which are not applicable.)
Debit or Credit
Shown or Not
Item
Bank Balance
Book Balance
to Cash
Account
Shown on
Reconciliation
1. The company had outstanding checks to employees on September 30.
2. Night deposit made on September 30 after the bank closed.
3. Bank fees for check printing are not yet recorded by the company.
4. Bank service charge.
5. Checks outstanding on August 31 that cleared the bank in September.
6. A note receivable is collected by the bank for the company, but it is not yet recorded by the
company.
7. NSF check from a customer is shown on the bank statement but not yet recorded by the company.
8. The bank received an electronic funds transfer (EFT) and deposited the amount in the company's
account on September 30. The company has not yet recorded this EFT.
9. Interest earned on the September cash balance in the bank is not yet recorded by the company.
10. Deposit made on September 5 and processed by the bank on September 6.
11. Checks written by another depositor but mistakenly charged against this company's account.
12. Bank service charge for September is not yet recorded by the company.
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