Identifying timing differences related to a bank reconciliationFor each timing difference listed, identify whether the difference would be reported on the book side of the reconciliation or the bank side of the reconciliation. In addition, identify whether the difference would be an addition or subtraction. Deposit in transitBank collectionDebit memorandumEFT cash receiptOutstanding checks$1,000 deposit erroneously recorded by the bank as $100Service chargesInterest revenue$2,500 cash payment for rent expense erroneously recorded by the business as $250Credit memorandum

Timing differences: When accounting records are maintained by both bank and business, time interval…

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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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Identifying timing differences related to a bank reconciliation

For each timing difference listed, identify whether the difference would be reported on the book side of the reconciliation or the bank side of the reconciliation. In addition, identify whether the difference would be an addition or subtraction.

Deposit in transit
Bank collection
Debit memorandum
EFT cash receipt
Outstanding checks
$1,000 deposit erroneously recorded by the bank as $100
Service charges
Interest revenue
$2,500 cash payment for rent expense erroneously recorded by the business as $250
Credit memorandum

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