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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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![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.](https://content.bartleby.com/qna-images/question/97b5df25-1667-438a-b46e-c2a0d1ae7c86/1c20e336-b0f1-44f8-8cf7-9c747108f817/j9ynkf_thumbnail.jpeg)
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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- Can you please show your work on how you came up with the balance per bank and the balance per book on the reconciliation statement? Branson Co. received its bank statement for the month ending May 31, 2019, and reconciled the statement balance to the May 31, 2019, balance in the Cash account. The reconciled balance was determined to be $36,400. The reconciliation recognized the following items: A deposit made on May 31 for $22,700 was included in the Cash account balance but not in the bank statement balance. Checks issued but not returned with the bank statement were No. 673 for $4,550 and No. 687 for $9,700. Bank service charges shown as a deduction on the bank statement were $110. Interest credited to Branson Co.'s account but not recorded on the company's books amounted to $88. Returned with the bank statement was a "debit memo" stating that a customer's check for $3,240 that had been deposited on May 23 had been returned because the customer's account was overdrawn. During a…arrow_forwardPlease help me . Thankyou.arrow_forwardWhich of the following items will not appear on the Books side of the reconciliation? A a non-sufficient funds check of $75 was returned to the bank and deduct it from the bank balance. Be a deposit was in transit in not yet deposited in the bank. See the bank charge a service fee of $20 on the bank statement. D the bank collected in notes receivable of $1000 for the businessarrow_forward
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- The bank reconciliation shows the following adjustments: Deposits in transit: $892 Notes receivable collected by bank: $1,030; interest: $25 Outstanding checks: $590 Error by bank: $340 Bank charges: $34 Prepare the correcting journal entries. If an amount box does not require an entry, leave it blank.arrow_forwardIn the reconciliation of the June bank statement, a deposit made on June 30 did not appear on the June bank statement. How is this deposit in transit shown on the bank reconciliation? Multiple Choice O O Added to the unadjusted bank balance. Subtracted from the unadjusted bank balance. Added to the unadjusted book balance. Subtracted from the unadjusted book balance.arrow_forwardUse the following bank statement and T-account to prepare any journal entries needed as a result of the May 31 bank recor no entry Is requlred for a transactlon/event, select "No Journal Entry Requlred" In the first account fleld.) BANK STATEMENTarrow_forward
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