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Type of reconciling
item |
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Journal
Entry? |
| 1. |
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A deposit of collections on account from customers was made,
but the amount did not match what appeared on the bank statement.
The correct amount of $4,540, shown on the bank statement should
have been used in Marin’s books instead of the amount recorded of
$4,629. |
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Add to the cash balance per bankDoes not affect the bank
reconciliationDeduct from the cash balance per booksDeduct from the
cash balance per bankAdd to the cash balance per books
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YesNo
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| 2. |
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Included on the bank statement is an automatic charge for Marin
Service’s monthly mortgage payment. The amount of the payment was
$790 of which $485 is principal. Marin’s bookkeeper always waits
for the transaction to appear on the bank statement before
recording it because the amount varies from month to month. |
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Deduct from the cash balance per bankDoes not affect the bank
reconciliationAdd to the cash balance per bankAdd to the cash
balance per booksDeduct from the cash balance per books
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YesNo
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| 3. |
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When retracing cheque payments to the journals during the bank
reconciliation process, it was noticed that a $1,720 cheque,
payable to Marin Service’s landlord for the current month’s rent,
was charged to Advertising Expense. |
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Add to the cash balance per booksDeduct from the cash balance
per bankAdd to the cash balance per bankDeduct from the cash
balance per booksDoes not affect the bank reconciliation
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YesNo
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| 4. |
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On the previous month’s bank reconciliation, an outstanding
cheque for $450 for a final pay cheque of a part-time employee had
not yet been cashed. On the current month bank statement, the
cheque has still not cleared the bank account. |
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Add to the cash balance per bankAdd to the cash balance per
booksDoes not affect the bank reconciliationDeduct from the cash
balance per bankDeduct from the cash balance per books
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YesNo
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| 5. |
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Marin has an agreement with RBC to collect notes receivable and
any outstanding interest on the notes. Marin’s bookkeeper waits to
record any collection until the amounts are reported by RBC,
because it is not predictable how much of the collection will be
interest. On the current bank statement, an entry appears for a
deposit of $1,080 for a collection of a note with a principal
amount of $1,020. |
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Add to the cash balance per booksAdd to the cash balance per
bankDeduct from the cash balance per bankDoes not affect the bank
reconciliationDeduct from the cash balance per books
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YesNo
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| 6. |
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Appearing on the bank reconciliation is a charge for an NSF
cheque of $670 which had been deposited earlier in the month by
Marin as a payment on account by a new customer. RBC had added an
additional charge of $33 for processing the NSF cheque. Because the
customer was new, Marin warned the customer that any NSF charges
would be added to the amount owing from the customer. |
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Add to the cash balance per bankDeduct from the cash balance per
bankDeduct from the cash balance per booksDoes not affect the bank
reconciliationAdd to the cash balance per books
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YesNo
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| 7. |
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A cheque correctly issued in the amount of $490 as a payment on
account to a supplier was incorrectly recorded in the books as
$590. |
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Deduct from the cash balance per booksAdd to the cash balance
per bankDeduct from the cash balance per bankAdd to the cash
balance per booksDoes not affect the bank reconciliation
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NoYes
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| 8. |
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Two cheques totalling $314, which were outstanding at the end
of the last month, cleared in the current month’s bank
statement. |
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Does not affect the bank reconciliationAdd to the cash balance
per booksDeduct from the cash balance per bankDeduct from the cash
balance per booksAdd to the cash balance per bank
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YesNo
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| 9. |
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Included in the bank statement are charges of $46 for the use
of debit cards by Marin’s customers. Marin waits for the
information to be processed by the bank before recording them in
the books. |
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Deduct from the cash balance per booksDoes not affect the bank
reconciliationDeduct from the cash balance per bankAdd to the cash
balance per bankAdd to the cash balance per books
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YesNo
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