Question

Indicate how each of the following situations would be handled when preparing a bank reconcilation.

a. is added to the book balance b. is subtracted from the book balance c. is added to the bank statement balance d. is subtracted from the bank statement balance

,,,,,,, A deposit in transit in the amount of $2,000

,,,,,,,An NSF check from a customer

,,,,,,,,A bank error where a $500 deposit made by another bank customer was posted to your company's account by mistake.

,,,,,,,,A check written for $4,500 which has not yet been paid by the bank.

,,,,,,,,A check issued and paid by the bank in the amount of $629, but entered in the cash disbursements journal as $692.

,,,,,,,,Bank service charges of $30

Answer 1

Indicate how each of the following situations would be handled when preparing a bank reconcilation.

A deposit in transit in the amount of $2,000	c) is added to the bank statement balance
An NSF check from a customer	a) is added to the book balance
A bank error where a $500 deposit made by another bank customer was posted to your company's account by mistake.	d) is subtracted from the bank statement balance
A check written for $4,500 which has not yet been paid by the bank.	d) is subtracted from the bank statement balance
A check issued and paid by the bank in the amount of $629, but entered in the cash disbursements journal as $692.	a) is added to the book balance
Bank service charges of $30	b) is subtracted from the book balance