Horton Corporation is preparing a bank reconciliation and has identified the following potential reconciling items. For each item, indicate if it is (1) added to balance per bank statement, (2) deducted from balance per bank statement,(3) added to balance per books, or (4) deducted from balance per books.(a) Deposit in transit $5,500. (d) Outstanding checks $7,422.(b) Bank service charges $25. (e) NSF check returned $377.(c) Interest credited to Horton’s account $31.
Horton Corporation is preparing a bank reconciliation and has identified the following potential reconciling items. For each item, indicate if it is (1) added to balance per bank statement, (2) deducted from balance per bank statement,(3) added to balance per books, or (4) deducted from balance per books.(a) Deposit in transit $5,500. (d) Outstanding checks $7,422.(b) Bank service charges $25. (e) NSF check returned $377.(c) Interest credited to Horton’s account $31.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Horton Corporation is preparing a bank reconciliation and has identified the following potential reconciling items. For each item, indicate if it is (1) added to balance per bank statement, (2) deducted from balance per bank statement,(3) added to balance per books, or (4) deducted from balance per books.
(a) Deposit in transit $5,500. (d) Outstanding checks $7,422.
(b) Bank service charges $25. (e) NSF check returned $377.
(c) Interest credited to Horton’s account $31.
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