McDaniel LLP is reconciling their bank account. The following items were discovered. For each one, identify what should be done. a. Add to bank balance b. Subtract from bank balance c. Add to book balance d. Subtract from book balance 1. The bank charged a $25 monthly service fee. 2. Check # 678 written for $504 did not clear the bank statement; it was mailed the last day of the month. 3. A deposit of $4,000 was made after business hours on the last day of the month and does not show in the bank statement. 4. A customer made a direct ACH payment to our account for $1,400 and we did not know about it until looking at the bank statement. 5. We wrote check #656 for $1,500 and it cleared the bank statement, but we wrote it in our books for $1,050. Answers: 1. 2.

McDaniel LLP is reconciling their bank account. The following items were discovered. For each one, identify what should be done. a. Add to bank balance b. Subtract from bank balance c. Add to book balance d. Subtract from book balance 1. The bank charged a $25 monthly service fee. 2. Check # 678 written for $504 did not clear the bank statement; it was mailed the last day of the month. 3. A deposit of $4,000 was made after business hours on the last day of the month and does not show in the bank statement. 4. A customer made a direct ACH payment to our account for $1,400 and we did not know about it until looking at the bank statement. 5. We wrote check #656 for $1,500 and it cleared the bank statement, but we wrote it in our books for $1,050. Answers: 1. 2.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter8: Fraud, Internal Controls, And Cash

Section: Chapter Questions

Problem 11EA: Using the following information, prepare a bank reconciliation. Bank balance: $6,988 Book balance:...

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