A table for a monthly bank reconciliation dated September 30 is given below. For each item 1 through 12, indicate whether the item should be added to or subtracted from the book or bank balance, and whether it should or should not appear on the reconciliation. Note: Select the answers in the appropriate cells. Leave no cells blank. Be certain to select "NA" in fields which are not applicable. Item 1. Bank service charge for September is not yet recorded by the company. 2. The company made a month-end accrual for expired insurance coverage. 3. Deposits mailed to the bank on September 30 had not been recorded by the bank until October 2. 4. Check written against the company's account and cleared by the bank erroneously not recorded by the company's recordkeeper. 5. Outstanding checks to suppliers existed at the end of September. 6. The company had outstanding checks to employees on September 30. 7. Checks written and mailed to payees on October 2. 8. The company hired a new treasurer. 9. The bank received an electronic funds transfer (EFT) and deposited the amount in the company's account on September 30. The company has not yet recorded this EFT. 10. The company made a month-end accrual for wages earned but not yet paid. 11. Deposits in transit as of September 30 were not recorded by the bank until October 3. 12. Night deposit made on September 30 after the bank closed. Bank Balance Debit or Book Balance Credit to Cash Account Shown or Not Shown on Reconciliation
A table for a monthly bank reconciliation dated September 30 is given below. For each item 1 through 12, indicate whether the item should be added to or subtracted from the book or bank balance, and whether it should or should not appear on the reconciliation. Note: Select the answers in the appropriate cells. Leave no cells blank. Be certain to select "NA" in fields which are not applicable. Item 1. Bank service charge for September is not yet recorded by the company. 2. The company made a month-end accrual for expired insurance coverage. 3. Deposits mailed to the bank on September 30 had not been recorded by the bank until October 2. 4. Check written against the company's account and cleared by the bank erroneously not recorded by the company's recordkeeper. 5. Outstanding checks to suppliers existed at the end of September. 6. The company had outstanding checks to employees on September 30. 7. Checks written and mailed to payees on October 2. 8. The company hired a new treasurer. 9. The bank received an electronic funds transfer (EFT) and deposited the amount in the company's account on September 30. The company has not yet recorded this EFT. 10. The company made a month-end accrual for wages earned but not yet paid. 11. Deposits in transit as of September 30 were not recorded by the bank until October 3. 12. Night deposit made on September 30 after the bank closed. Bank Balance Debit or Book Balance Credit to Cash Account Shown or Not Shown on Reconciliation
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter6: Cash And Internal Control
Section: Chapter Questions
Problem 6.3E
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Transcribed Image Text:A table for a monthly bank reconciliation dated September 30 is given below. For each item 1 through 12, indicate whether the item
should be added to or subtracted from the book or bank balance, and whether it should or should not appear on the reconciliation.
Note: Select the answers in the appropriate cells. Leave no cells blank. Be certain to select "NA" in fields which are not applicable.
Item
1. Bank service charge for September is not yet recorded by the company.
2. The company made a month-end accrual for expired insurance coverage.
3. Deposits mailed to the bank on September 30 had not been recorded by the bank until October 2.
4. Check written against the company's account and cleared by the bank erroneously not recorded by
the company's recordkeeper.
5. Outstanding checks to suppliers existed at the end of September.
6. The company had outstanding checks to employees on September 30.
7. Checks written and mailed to payees on October 2.
8. The company hired a new treasurer.
9. The bank received an electronic funds transfer (EFT) and deposited the amount in the company's
account on September 30. The company has not yet recorded this EFT.
10. The company made a month-end accrual for wages earned but not yet paid.
11. Deposits in transit as of September 30 were not recorded by the bank until October 3.
12. Night deposit made on September 30 after the bank closed.
Bank Balance
Debit or
Book Balance Credit to Cash
Account
Shown or Not
Shown on
Reconciliation
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