In a bank reconciliation, to adjust for the bank's deducting $980 for acompany check that you wrote and booked for $890 requires:O reducing the bank balance by $90O reducing the book balance by $90increasing the bank balance by $90O increasing the book balance by $90 Your company writes a check for $123 but records it as $132. To adjustfor this in a bank reconciliation, you would:reduce the book balance by $9O reduce the bank balance by $9O increase the bank balance by $9O increase the book balance by $9

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In a bank reconciliation, to adjust for the bank's deducting $980 for a company check that you wrote and booked for $890 requires: reducing the bank balance by $90 O reducing the book balance by $90 O increasing the bank balance by $90 increasing the book balance by $90

In a bank reconciliation, to adjust for the bank's deducting $980 for a company check that you wrote and booked for $890 requires: reducing the bank balance by $90 O reducing the book balance by $90 O increasing the bank balance by $90 increasing the book balance by $90

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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Identify whether each of the following items would on appear on the bank side or the book side of a bank reconciliation. Enter Bank or Book below. Bank service charges Outstanding checks Deposits in transit NSF check Interest on a checking account The company properly wrote a check for $95.80 that the bank incorrectly paid as $9.58. The bank printed checks for the depositor for a fee. Bank debit memorandum Bank credit memorandum The bank collected a $1,000 note for the depositor.
Crane Company is a very profitable small business. It has not, however, given much consideration to internal control. For example, in an attempt to keep clerical and office expenses to a minimum, the company has combined the jobs of cashier and bookkeeper. As a result, Bret Turrin handles all cash receipts, keeps the accounting records, and prepares the monthly bank reconciliations. The balance per the bank statement on October 31, 2022, was $18,890.00. Outstanding checks were No. 62 for $149.00, No. 183 for $171.00, No. 284 for $262.00, No. 862 for $222.00, No. 863 for $277.00, and No. 864 for $202.00. Included with the statement was a credit memorandum of $209.00 indicating the collection of a note receivable for Crane Company by the bank on October 25. This memorandum has not been recorded by Crane. The company's ledger showed one Cash account with a balance of $22,311.00. The balance included undeposited cash on hand. Because of the lack of internal controls, Bret took for personal…
The bank reconciliation shows the following adjustments: Deposits in transit: $852 Notes receivable collected by bank: $1,000; interest: $20 Outstanding checks: $569 Error by bank: $300 Bank charges: $30 Using the following accounts: Bank Errors Bank Service Charges Cash Deposits in Transit Interest Expense Interest Income Notes Receivable Outstanding Checks prepare the two correcting journal entries: DR [ Select ] ["Cash", "Bank Service Charges", "Interest Income", "Bank Errors", "Interest Expense"] [ Select ] ["$300", "$852", "$30", "$569", "$1,020"] CR [ Select ] ["Bank Errors", "Interest Income", "Bank Service Charges", "Interest Expense", "Cash"] [ Select ] ["$30", "$852", "$569", "$300", "$1,030"] and DR…
Using the reconciling items below, prepare a bank reconciliation for the September 30, 2021 year end. For every item on the bank reconciliation, explain what supporting evidence you would obtain to test the item (be specific, do not just say “look at supporting documentation”). Also, provide your conclusion – based on your bank reconciliation, is the cash balance in the client’s books correct? If not – quantify the error. 1. Cash balance per client $100,000 2. Cash balance per the bank statement $100,000 3. The company wrote mailed the following cheques on September 30, 2021, which did not get cashed until October 2, 2021. a. Cheque 1234 $2,000 b. Cheque 2345 $4,000 c. Cheque 3456…
While performing its monthly bank reconciliation, XYZ Inc. discovered that it recorded a cash receipt from a customer for an incorrect amount. The company debited “Cash” and credited “Sales Revenue” for $920 instead of $290. On its bank reconciliation, how should the company adjust for this error? Add $630 to the company (book) side. Subtract $630 from the company (book) side. Add $630 to the bank side. Subtract $630 from the bank side.
The bank reconciliation for Widgets Inc. included the following items: $30 bank service charge; NSF check of $275; bank error of $30; EFT collection from a customer for $2,335. Based on the information, Widgets Inc. will adjust cash by what amount? O $1,480 O $2,030 O $2,000 O $2,060
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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 of the following items will not appear on the Books side of the reconciliation? A a non-sufficient funds check of $75 was returned to the bank and deduct it from the bank balance. Be a deposit was in transit in not yet deposited in the bank. See the bank charge a service fee of $20 on the bank statement. D the bank collected in notes receivable of $1000 for the business
Part ii. Prepare the journal entries resulting from the bank reconciliation
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Based on the following information, what amount would be subtracted from the bank statement side of the bank reconciliation? ATM withdrawal $31; Outstanding checks $135; Interest $4; Deposit in-transit $87.Multiple Choice $139 $166 $87 $135 $31