In preparing a bank reconciliation, WHT IS THE PROPER TREATMENT OF A DEPOSIT IN TRANSIT? Subtract from the reported cash in the companys books, or subtract from the reported cash balance in the bank statement, or add to the reported cash balance in the companys books, or add to the reported cash balance in the bank statement

In preparing a bank reconciliation, WHT IS THE PROPER TREATMENT OF A DEPOSIT IN TRANSIT? Subtract from the reported cash in the companys books, or subtract from the reported cash balance in the bank statement, or add to the reported cash balance in the companys books, or add to the reported cash balance in the bank statement

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: 5)

A: Here's why: Book balance are amount includes items that company know but not yet reflected and…

Q: Which of the following items is added to the “cash balance from bank statement” on a bank…

A: Deposits in transit: Deposit in transit means the money received by a company and recorded in the…

Q: When preparing bank reconciliation, deposits in transit will: A. Increase the balance per…

A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with…

Q: On a bank reconciliation, which of the following is added to the balance per book? Interest earned…

A: In order to make sure that their bank records—bank statements—and their own accounting…

Q: Which audit claims will be met by the audit method of cash count and bank verification requests

A: introduction: If the management's financial statements have any inaccuracies or frauds, the only…

Q: In preparing a bank reconciliation, WHT IS THE PROPER TREATMENT OF A DEPOSIT IN TRANSIT? Subtract…

A: A bank reconciliation statement is a financial document that reconciles the bank statement balance…

Q: uestion: How would each of the following items be recorded on a bank reconciliation? Next to each…

A: Bank reconciliation is prepared to find out the causes of difference between the end balances of…

Q: When preparing a bank reconciliation, a not sufficient funds (NSF) check is

A: Not sufficient funds (NSF) check is the check issued by the issuer but which is not honured or…

Q: Preparing the bank recociliation is consifered to be an important step in interna; control process…

A: Bank reconciliation refers to the process of reconciling the balances of the accounting records of…

Q: Would charges for some other company's safe deposit box that were posted to your account be added to…

A: Bank reconciliation: Bank statement is prepared by the bank. The company maintains its own records…

Q: Reconciling Items per Bank - Outstanding Cheques For a bank reconciliation, how would one account…

A: Bank reconciliation is a statement prepared to reconcile the differences in balance in cash account…

Q: The bank reconciliation can be used to control cash in a bank account. A) True B) False

A: Lets understand the basics. Bank reconciliation statement is a statement prepared to match cash…

Q: Explain

A: Question 1)An NSF fee stands for Non-Sufficient Funds fee. It's a penalty charged by your bank when…

Q: Which is the correct action to reconcile the bank statement for a Bank service charge? OA) Add to…

A: Explanation of each item are provided as below : A. Added to Book Balance : In Bank reconciliation,…

Q: Which of the following items is subtracted from the “cash balance from bank statement” on a bank…

A: Deposits in transit: Deposit in transit means the money received by a company and recorded in the…

Q: What is the adjusted balance on the bank reconciliation? (See image of additional info)

A: Cash balance as per bank statement 12,175 Add: Deposits in transit 1800 13,975 Less:…

Q: The process of determining any differences between a bank statement balance and a checkbook balance…

A: The objective of the question is to identify the correct term for the process of determining any…

Q: Which of the following adjusts the company's balance of cash in a bank reconciliation? Multiple…

A: Bank reconciliation is the statement prepared by the entity for the purpose of adjusting the errors…

Q: CP 11 Bug-Off Exterminators provides pest control services and sells extermination products…

A: A bank reconciliation statement provides the details and shows us why and how much and which…

Q: A deposit in transit on last period's bank reconciliation is shown as a deposit on the bank…

A: Step 1: Introduction to the Bank Reconciliation:Bank reconciliations are completed regularly in…

Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

In preparing a bank reconciliation, WHT IS THE PROPER
TREATMENT OF A DEPOSIT IN TRANSIT? Subtract from
the reported cash in the companys books, or subtract
from the reported cash balance in the bank statement, or
add to the reported cash balance in the companys
books, or add to the reported cash balance in the bank
statement

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction:

VIEW

Step 2: Proper treatment of deposit in transit:

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

When completing the bank reconciliation, Bank Service Charges would be: Subtracted from the Cash General Ledger Balance Subtracted from the Bank Statement Balance Added to the Cash General Ledger Balance Added to the Bank Statement Balance
Prepare any journal entries that should be made as a result of the bank reconciliation.
QUESTION 14 When preparing the bank reconciliation, a "deposit in transit" represents a deposit that is recorded on the accounting records of the business, but is not yet recorded on the business's bank statement. an addition to the bank balance amount a timing difference that does not require a journal entry all of the above
I need help with this problem
The bank reconciliation ? Please explain with full explanation. a. should be prepared by an employee who records cash transactions b. is part of the internal control system c. is for information purposes only d. is sent to the bank for verification
Please help me with this practice question?
Bank Reconciliation For a through g, indicate whether its amount (1) affects the bank or book side of a bank reconciliation, (2) is an addition or subtraction in a bank reconciliation, and (3) requires a journal entry. a. Interest on cash balance b. Bank service charges c. Minimum balance bank fee d. Outstanding checks e. Collection of note by bank f. NSF checks g. Deposits in transit Bank or Book Side Add or Subtract Entry or Not
Which one of these documents is not required for bank reconciliation? (A) Bank Column of cash book (B) Bank pass book (C) Previous year's balance sheet (D) Bank statement
why is there generally a difference between the balance in a cash account on the company's books and the balance on the bank statement
Why does the bank treat an account balance as a Credit when there is money in the account, while in the general ledger cash records of the business, the balance would show as a Debit?
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