Item 1. Checks outstanding on August 31 that cleared the bank in September. 2. Deposits mailed to the bank on September 30 had not been recorded by the bank until October 2. 3. A note receivable is collected by the bank for the company, but it is not yet recorded by the company. 4. The company hired a new treasurer. 5. Outstanding checks to suppliers existed at the end of September. 6. The company had outstanding checks to employees on September 30. 7. Check written against the company's account and cleared by the bank erroneously not recorded by the company's recordkeeper. 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. Night deposit made on September 30 after the bank closed. 10. Deposits in transit as of September 30 were not recorded by the bank until October 3. 11. Interest was earned by the company on the cash balance it had with the bank. The company has not yet recorded this interest. 12. The company made a month-end accrual for wages earned but not yet paid. Bank Balance Debit or Book Balance Credit to Cash Account Shown or Not Shown on Reconciliation
Item 1. Checks outstanding on August 31 that cleared the bank in September. 2. Deposits mailed to the bank on September 30 had not been recorded by the bank until October 2. 3. A note receivable is collected by the bank for the company, but it is not yet recorded by the company. 4. The company hired a new treasurer. 5. Outstanding checks to suppliers existed at the end of September. 6. The company had outstanding checks to employees on September 30. 7. Check written against the company's account and cleared by the bank erroneously not recorded by the company's recordkeeper. 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. Night deposit made on September 30 after the bank closed. 10. Deposits in transit as of September 30 were not recorded by the bank until October 3. 11. Interest was earned by the company on the cash balance it had with the bank. The company has not yet recorded this interest. 12. The company made a month-end accrual for wages earned but not yet paid. Bank Balance Debit or Book Balance Credit to Cash Account Shown or Not Shown on Reconciliation
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter6: Cash And Internal Control
Section: Chapter Questions
Problem 6.1AP
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Question
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.
Transcribed Image Text:Item
1. Checks outstanding on August 31 that cleared the bank in September.
2. Deposits mailed to the bank on September 30 had not been recorded by the bank until October 2.
3. A note receivable is collected by the bank for the company, but it is not yet recorded by the company.
4. The company hired a new treasurer.
5. Outstanding checks to suppliers existed at the end of September.
6. The company had outstanding checks to employees on September 30.
7. Check written against the company's account and cleared by the bank erroneously not recorded by
the company's recordkeeper.
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. Night deposit made on September 30 after the bank closed.
10. Deposits in transit as of September 30 were not recorded by the bank until October 3.
11. Interest was earned by the company on the cash balance it had with the bank. The company has
not yet recorded this interest.
12. The company made a month-end accrual for wages earned but not yet paid.
Bank Balance
▶
Book Balance
Debit or
Credit to Cash
Account
Shown or Not
Shown on
Reconciliation
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