Q.- Identify each of the following reconciling items as: (a) an addition to the cash balance according to the bank statement, (b) a deduction from the cash balance according to the bank statement, (c) an addition to the cash balance according to the company's records, or (d) a deduction to the cash balance according to the company's records. (None of the transactions reported by bank debit and credit memos have been recorded by the company.) 1. Check of a customer returned by bank to company because of insufficient funds, $1,200. 2. Deposit in transit, $12,375. 3. Outstanding checks, $14,770. 4. Note collected by bank, $10,600.
Q.- Identify each of the following reconciling items as: (a) an addition to the cash balance according to the bank statement, (b) a deduction from the cash balance according to the bank statement, (c) an addition to the cash balance according to the company's records, or (d) a deduction to the cash balance according to the company's records. (None of the transactions reported by bank debit and credit memos have been recorded by the company.) 1. Check of a customer returned by bank to company because of insufficient funds, $1,200. 2. Deposit in transit, $12,375. 3. Outstanding checks, $14,770. 4. Note collected by bank, $10,600.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter7: Accounting For Cash
Section: Chapter Questions
Problem 2CE
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![Q.- Identify each of the following reconciling items as: (a) an
addition to the cash balance according to the bank statement, (b) a
deduction from the cash balance according to the bank statement,
(c) an addition to the cash balance according to the company's
records, or (d) a deduction to the cash balance according to the
company's records. (None of the transactions reported by bank
debit and credit memos have been recorded by the company.)
1. Check of a customer returned by bank to company
because of insufficient funds, $1,200.
2. Deposit in transit, $12,375.
3. Outstanding checks, $14,770.
4. Note collected by bank, $10,600.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ab7ebd1-9174-4192-b7aa-6f9f70d881b3%2Ffa225730-49ed-42fa-9118-50de8d0112e2%2F7i6v8bj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Q.- Identify each of the following reconciling items as: (a) an
addition to the cash balance according to the bank statement, (b) a
deduction from the cash balance according to the bank statement,
(c) an addition to the cash balance according to the company's
records, or (d) a deduction to the cash balance according to the
company's records. (None of the transactions reported by bank
debit and credit memos have been recorded by the company.)
1. Check of a customer returned by bank to company
because of insufficient funds, $1,200.
2. Deposit in transit, $12,375.
3. Outstanding checks, $14,770.
4. Note collected by bank, $10,600.
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