If $2,000 is withdrawn from the bank by a customer, the bank'sO Assets riseAssets and liabilities decreaseAssets decrease and liabilities riseO Liabilities decrease and assets rise

When the customer withdraws money, in his books, the cash account is debited and bank account is…

Answered: If $2,000 is withdrawn from the bank by…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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do i add the opening balance after the difference of opening balance of bank statement and cash book gives me zero when i update the cash book?
ThstructionS: 1. Prepare a bank reconciliation. Deaver Consulting Bank Reconciliation October 31, 20Y6 Cash balance according to bank statement 31,095 Add: Deposit of October 31, not recorded by bank 4,120 35,215 Add: Outstanding checks 10,125 Deduct: Bank error in charging check as $230 instead of $320 90 10,215 Adjusted balance 25,000 Cash balance according to Deaver Consulting 15,750 Add: Proceeds of note collected by bank, including $400 interest 10,000 10.400 Deduct: Error in recording check by the company as $120 instead of $1,200 1,080 Deduct: Bank service charges 70 1,150 Adjusted balance 25,000 2. Illustrate the effects on the accounts and financial statements of the bank reconciliation. If no account or activity is affected, select "No effect" from the dropdown and leave the co
Instructions: Calculate the following Reconciliation for Hancock, Reid, & Carson for the period ending March 31, 2021. Prepare the March bank reconciliation statement on the blank statement provided for Hancock, Reid, & Carson Ltd. according to the following information: • Royal Bank of Canada statement says the current balance is $17,864.12. • There was an NSF cheque #1706 from Peter Bartrum in the amount of $1,870.54. There are bank service charges of $60.00; there are overdraft interest charges of $86.90; there is a preauthorized loan payment charge of $617.44; the bank paid Hancock, Reid & Carson Ltd. $204.12 interest on a revolving T-bill investment, and there is a charge of $54.00 for the annual rental of a safety deposit box. Upon comparing the bank statement to the company's cheque register, you noted that the final balance in the cheque register was $16,627.01 and that cheques #588 for $198.27, #592 for $i,846.40, #596 for $374.80 and #599 for $1,320.40 are outstanding. You…
Show new balance sheet if bank uses purchased liquidity management to offset expected drain of $12 million net deposit. Also explain effect on the size and composition of assets and liab
The changes in the Cash in Bank account are reported in the statement of changes in owners equity. True or false?
In a bank reconciliation, to adjust for the bank's deducting $980 for a company check that you wrote and booked for $890 requires A. increasing the book balance by $90 B. reducing the book balance by $90 C. increasing the bank balance by 590 D. reducing the bank balance by $90

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If $2,000 is withdrawn from the bank by a customer, the bank's Assets rise O Assets and liabilities decrease )Assets decrease and liabilities rise Liabilities decrease and assets rise