Assign the letter to indicate whether the following items would be added to or subtracted from the company's books or the bank statement during the construction of a bank reconciliation. Prepare entries to record the following:a. Issued 1,000 shares of $10 par common stock at $56. If an amount box does not require an entry, leave it blank or enter "0".b. Issued 1,400 shares of $10 par common stock in exchange for equipment with a fair market price of $21,000. Ir an amount box does not require an entry, leave it blank or enter "0". outstanding checksbank service chargeadded to the company'sbooksdeposit in transitsubtracted from theNSF checkcompany's booksadded to the bankEFT deposit from a customerstatement balancecharges for some othercompany's safe deposit boxwere posted to your accountsubtracted from the bankstatement balancea $1,000 note from one ofyour customers wascollected by the bankinterest revenue earned bythe note above

Bank Reconciliation: Bank Reconciliation statement is the statement that reconciles bank account…

Answered: Assign the letter to indicate whether…

Assign the letter to indicate whether the following items would be added to or subtracted from the company's books or the bank statement during the construction of a bank reconciliation.

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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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

Assign the letter to indicate whether the following items would be added to or subtracted from the company's books or the bank statement during the construction of a bank reconciliation.

Prepare entries to record the following:
a. Issued 1,000 shares of $10 par common stock at $56. If an amount box does not require an entry, leave it blank or enter "0".
b. Issued 1,400 shares of $10 par common stock in exchange for equipment with a fair market price of $21,000. Ir an amount box does not require an entry, leave it blank or enter "0".

outstanding checks
bank service charge
added to the company's
books
deposit in transit
subtracted from the
NSF check
company's books
added to the bank
EFT deposit from a customer
statement balance
charges for some other
company's safe deposit box
were posted to your account
subtracted from the bank
statement balance
a $1,000 note from one of
your customers was
collected by the bank
interest revenue earned by
the note above

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