A table for a monthly bank reconciliation dated September 30 is given below. For each item 1 through 12, indicate whether the item should be added to or subtracted from the book or bank balance, and whether it should or should not appear on the reconciliation. **Bank Reconciliation Table Explanation**This table is a tool used for bank reconciliation, where discrepancies between the bank balance and the company's book balance are identified and adjusted. Below are the items listed in the table, which detail typical scenarios that affect reconciliation:1. **Checks Outstanding on August 31 that Cleared in September:** These are checks that were issued before the end of August but were cleared by the bank in September.2. **Deposits Mailed on September 30:** These deposits were sent to the bank on the last day of September but were not recorded by the bank until October 2.3. **Note Receivable Collected by the Bank:** The company has a note receivable that the bank collected, but it has not yet been recorded in the company’s books.4. **Hiring a New Treasurer:** This event does not directly affect the bank reconciliation process.5. **Outstanding Checks to Suppliers at the End of September:** Checks that have been issued to suppliers but have not yet cleared the bank by the end of September.6. **Outstanding Checks to Employees on September 30:** Similar to the supplier checks, these are employee-related checks that were outstanding at month-end.7. **Erroneously Cleared Checks:** A check was mistakenly cleared by the bank and not recorded in the company’s books.8. **EFT Received by the Bank on September 30:** An electronic funds transfer was received and deposited by the bank but has not been recorded in the company's records.9. **Night Deposit on September 30:** A deposit made after banking hours on September 30.10. **Deposits in Transit as of September 30:** Deposits that were in transit at the month-end and recorded by the bank a few days later.11. **Interest Earned on Cash Balance:** Interest earned on the company’s cash balance that has not been recorded in the books yet.12. **Accrued Wages Earned but Not Paid:** Wages that have been accrued by the company but not yet disbursed.This table is intended to serve as a guide to adjust discrepancies, with columns provided to record changes in both the bank balance and book balance, credit or debit impacts to the cash account, and notes on whether each item is shown or not shown in the reconciliation process.

A Bank Reconciliation is a statement showing the differences between the balance as shown in the…

Item 1. Checks outstanding on August 31 that cleared the bank in September. 2. Deposits mailed to the bank on September 30 had not been recorded by the bank until October 2. 3. A note receivable is collected by the bank for the company, but it is not yet recorded by the company. 4. The company hired a new treasurer. 5. Outstanding checks to suppliers existed at the end of September. 6. The company had outstanding checks to employees on September 30. 7. Check written against the company's account and cleared by the bank erroneously not recorded by the company's recordkeeper. 8. The bank received an electronic funds transfer (EFT) and deposited the amount in the company's account on September 30. The company has not yet recorded this EFT. 9. Night deposit made on September 30 after the bank closed. 10. Deposits in transit as of September 30 were not recorded by the bank until October 3. 11. Interest was earned by the company on the cash balance it had with the bank. The company has not yet recorded this interest. 12. The company made a month-end accrual for wages earned but not yet paid. Bank Balance Debit or Book Balance Credit to Cash Account Shown or Not Shown on Reconciliation

Item 1. Checks outstanding on August 31 that cleared the bank in September. 2. Deposits mailed to the bank on September 30 had not been recorded by the bank until October 2. 3. A note receivable is collected by the bank for the company, but it is not yet recorded by the company. 4. The company hired a new treasurer. 5. Outstanding checks to suppliers existed at the end of September. 6. The company had outstanding checks to employees on September 30. 7. Check written against the company's account and cleared by the bank erroneously not recorded by the company's recordkeeper. 8. The bank received an electronic funds transfer (EFT) and deposited the amount in the company's account on September 30. The company has not yet recorded this EFT. 9. Night deposit made on September 30 after the bank closed. 10. Deposits in transit as of September 30 were not recorded by the bank until October 3. 11. Interest was earned by the company on the cash balance it had with the bank. The company has not yet recorded this interest. 12. The company made a month-end accrual for wages earned but not yet paid. Bank Balance Debit or Book Balance Credit to Cash Account Shown or Not Shown on Reconciliation

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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If a company made a bank deposit on September 30 that did not appear on the bank statement dated September 30, in preparing the September 30 bank reconciliation, the company should: Multiple Choice Add the deposit to the bank statement balance. Skip the bank reconciliation this month. Add the deposit to the book balance of cash. Deduct the deposit from the bank statement balance. Deduct the deposit from the September 30 book balance and add it to the October 1 book balance.
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Please review the attached files. Thank you
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