A deposit in transit on last period's bank reconciliation is shown as a deposit on the bank statement this period. As a result, in preparing thisperiod's reconciliation, the amount of this deposit should be:a. Added to the book balance of cashb. Deducted from the book balance of cashc. Added to the bank balance of cashd. Deducted from the bank balance of cashe. Not included as a reconciling item

Step 1: Introduction to the Bank Reconciliation:Bank reconciliations are completed regularly in…

Answered: A deposit in transit on last period's…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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When completing the bank reconciliation, Bank Service Charges would be: Subtracted from the Cash General Ledger Balance Subtracted from the Bank Statement Balance Added to the Cash General Ledger Balance Added to the Bank Statement Balance
What is the adjusting entry for Bank Reconciliation: Debit Memo- Cost of Checkbook
QUESTION 14 When preparing the bank reconciliation, a "deposit in transit" represents a deposit that is recorded on the accounting records of the business, but is not yet recorded on the business's bank statement. an addition to the bank balance amount a timing difference that does not require a journal entry all of the above
True or False. The bank reconciliation, as an internal control over cash receipts and disbursements, should be prepared on a monthly basis and not only at the end of the annual period. True or false. A compensating balance that is legally restricted as to withdrawal can be included as part of cash and cash equivalents.
For each of the items in the following list, identify where it is included on a bank reconciliation. Next to each item indicate "Increase Bank" for an increase in the bank balance; "Decrease Bank" for a decrease in the bank balance; "Increase Book" for an increase in the book balance; "Decrease Book" for a decrease in the book balance; or "Not Applicable", to indicate that the item is not included in the bank reconciliation. 1. Outstanding cheques from a prior month (May) that are still outstanding select an option Decrease BankIncrease BankNot ApplicableDecrease BookIncrease Book 2. Outstanding cheques from a prior month (May) that are no longer outstanding select an option Increase BookDecrease BookIncrease BankDecrease BankNot Applicable 3. A deposit in transit from the current month (June) select an option…
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QUESTION 1 a) Explain the reasons for the difference between the cash book and bank statement. b) Explain why bank reconciliations are necessary?
trail balance not include O revenue. O cost of goods sold. O Ending inventory. O fright-in account. Dividend occur in the O single step income ststement. multiple step statement. O retained earning. Balance sheet.
The difference between book cash and bank cash, representing the net effect of checks in the process of clearing is which of the following? A- average daily receipts B- float C- average daily float D- weighted average float
show how the accounts related to the preceding sale and collection activities shoukd be reported on the current year income statement PLEASE DO NOT ANSWER IMAGE FORMET
Bank Reconciliation REQUIRED: A. Based on the application of the necessary procedures and appreciation of the above data, you are to provide the answers to the following: 1. How much is the unadjusted book receipts for August? 2. How much is the unadjusted book disbursements for August? 3. How much is the adjusted book receipts for August? 4. How much is the adjusted book disbursements for August? 5. How much is the adjusted cash balance as of August 31, 2022? B. Show the four column proof of cash as of August 31, 2022. C. Show the correct bank reconciliation, in good form, on August 31, 2022.
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