### Understanding Bank ReconciliationWhen performing a bank reconciliation, it's essential to identify which items affect the bank or book side, whether these items are additions or subtractions, and if a journal entry is necessary. This guide intends to provide clarity on these aspects for various common reconciliation items.Below is a detailed breakdown table to assist with this process:| Items | Bank or Book side | Addition or Subtraction | Entry required or Not ||-------|--------------------|-------------------------|-----------------------|| a. Minimum balance bank fee | | | || b. Bank collected note receivable on behalf of depositor | | | || c. Outstanding check written to supplier | | | || d. Bank maintenance fee | | | || e. Bank service charges | | | || f. Deposits in transit | | | || g. Interest on cash balance | | | |#### How to Use This Table:1. **Identify the Item**: Each row represents a specific item commonly encountered in bank reconciliations.2. **Determine the Affected Side**: - **Bank Side**: Items like outstanding checks or deposits in transit typically impact the bank's side of the reconciliation. - **Book Side**: Fees and notes collected by the bank usually affect the book side.3. **Specify Addition or Subtraction**: - **Subtraction**: Deductions such as bank fees or service charges. - **Addition**: Credits such as interest earned or notes collected by the bank.4. **Journal Entry Requirement**: - This column indicates whether a journal entry is needed to record the transaction in the company's books.It's important to fill out this table with the specific details of your transactions to ensure accuracy in your reconciliation process.

A bank reconciliation statement aligns an organization's bank account with its financial documents…

For each of the items indicate whether its amount affects the bank or book side of a bank reconciliation and is an addition or a subtraction in a bank reconciliation and whether a journal entry is required: Items a. Minimum balance bank fee b. Bank collected note receivable on behalf of depositor c. Outstanding check written to supplier d. Bank maintenance fee e. Bank service charges f. Deposits in transit g. Interest on cash balance Bank or Book side Addition or Subtraction Entry required or Not

For each of the items indicate whether its amount affects the bank or book side of a bank reconciliation and is an addition or a subtraction in a bank reconciliation and whether a journal entry is required: Items a. Minimum balance bank fee b. Bank collected note receivable on behalf of depositor c. Outstanding check written to supplier d. Bank maintenance fee e. Bank service charges f. Deposits in transit g. Interest on cash balance Bank or Book side Addition or Subtraction Entry required or Not

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

In a bank reconciliation, a bank service charge for printing checks is: A. added to the bank balance. B. added to the book balance. C. subtracted from the book balance. D. suthrachod from the bank balance.
Please provide correct answer
Items on company bank statement: 1. Bank correction of an error from posting another customers check(disbursement) to the company account 2. EFT deposit 3. Loan proceeds 4. NSF. Using the following format indicate whether each item would appear as a debit or credit memo on the bank statement and whether the item would increase or decrease the balance of the company account.
Would a bank service charge be added to or subtracted from the company's books or the bank statement during the construction of a bank reconciliation?
After preparing a bank reconciliation, journal entries are necessary to record Bank service charges Deposits in transit Outstanding checks Both B and C are correct A, B, and C are correct
Solve this problem
Assign the letter to indicate whether the following items would be added from the company's books or the bank statement during the construction of a bank reconciliation. Clear All Charges for some other company's safe deposit box were posted to your account A $1,000 note from one of Added to the bank your customers was statement balance collected by the bank Added the company's Interest revenue earned by books the note above EFT deposit from a customer
Which one of the following would not appear on a bank statement for a checking account? a.Deposits b.Service charges c.Outstanding checks d.Interest earned
Indicate whether each transaction would require an adjustment to the bank balance or the book balance when reconciling cash. Interest earned on the cash balance per the bank Choose. statement Minimum balance bank fee charged on the bank Choose. statement Collecton on a note from a customer as indicated on the Choose. bank statement NSF check received from a customer as revealed on the Choose. bank statement Outstanding checks Choose. Bank service charge on the bank statement Choose.
Which one of the following items requires an adjustment on the bank side of the bank reconciliation? A. interest earned B. a bank service charge C. a note collected by the bank D. deposits in transit
Match each item to a bank statement adjustment, a company books adjustment, or either. Question 8 options: NSF check Bank charges Outstanding checks Error in recording a check Interest revenue Deposit in transit Note collected by the bank 1. bank statement adjustment 2. company books adjustment 3. either
In the reconciliation of a bank statement, "deposits in transit" should be:a. added to the unadjusted book balanceb. subtracted from the unadjusted bank balancec. added to the unadjusted bank balanced. subtracted from the unadjusted bank balance