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 this period's reconciliation, the amount of this deposit should be: a. Added to the book balance of cash b. Deducted from the book balance of cash c. Added to the bank balance of cash d. Deducted from the bank balance of cash e. Not included as a reconciling item
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 this period's reconciliation, the amount of this deposit should be: a. Added to the book balance of cash b. Deducted from the book balance of cash c. Added to the bank balance of cash d. Deducted from the bank balance of cash e. Not included as a reconciling item
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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 this
period's reconciliation, the amount of this deposit should be:
a. Added to the book balance of cash
b. Deducted from the book balance of cash
c. Added to the bank balance of cash
d. Deducted from the bank balance of cash
e. Not included as a reconciling item](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdfc745d3-61a4-4a1f-b21a-7765b9429912%2F8a486dda-8076-4439-8e95-1cf846c6e7f4%2Fnjvo0xr_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 this
period's reconciliation, the amount of this deposit should be:
a. Added to the book balance of cash
b. Deducted from the book balance of cash
c. Added to the bank balance of cash
d. Deducted from the bank balance of cash
e. Not included as a reconciling item
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