Question

20. Based on the following information, what amount would be subtracted from the bank statement side of the bank reconciliation? ATM withdrawal $17; Outstanding checks $137; Interest $3; Deposit in transit $71.

Multiple Choice

• $71

• $140

• $17

• $154

• $137

Answer 1

ATM withdrawal is deducted directly from the bank and the corresponding reconciliation entry needs to be passed on the book side of the bank reconciliation statement

Interest earned is also effected on the bank reconcilaition statement and needs to be adjusted on the book side

Deposit in transit is added to the bank balance on the bank reconciliation statement

Outstanding checks of $137 needs to be deducted from the bank balance on the bank reconciliation statement

Correct choice E