Indicate whether the firm should add or subtract each item below from its balance of cash or the bank’s balance of cash in preparing a bank reconciliation. The first answer is provided as an example. If an item is not a reconciling item, state “No entry.” Reconciliation Items Bank Balance Company Balance 1. Checks outstanding Subtract No entry 2. NSF checks ________________ ________________ 3. Deposit recorded twice by company ________________ ________________ 4. Interest earned ________________ ________________ 5. Deposits outstanding ________________ ________________ 6. Bank service fees ________________ ________________
Indicate whether the firm should add or subtract each item below from its balance of cash or the bank’s balance of cash in preparing a bank reconciliation. The first answer is provided as an example. If an item is not a reconciling item, state “No entry.” Reconciliation Items Bank Balance Company Balance 1. Checks outstanding Subtract No entry 2. NSF checks ________________ ________________ 3. Deposit recorded twice by company ________________ ________________ 4. Interest earned ________________ ________________ 5. Deposits outstanding ________________ ________________ 6. Bank service fees ________________ ________________
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Indicate whether the firm should add or subtract each item below from its balance of cash or the bank’s balance of cash in preparing a bank reconciliation. The first answer is provided as an example. If an item is not a reconciling item, state “No entry.”
| Reconciliation Items | Bank Balance | Company Balance |
| 1. Checks outstanding | Subtract | No entry |
| 2. NSF checks | ________________ | ________________ |
| 3. Deposit recorded twice by company | ________________ | ________________ |
| 4. Interest earned | ________________ | ________________ |
| 5. Deposits outstanding | ________________ | ________________ |
| 6. Bank service fees | ________________ | ________________ |
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