sing the code letters below, indicate how each of the items listed would be handled in preparing a bank reconciliation. Enter the appropriate code letter in the space to the left of each item. Code A Add to cash balance per books Deduct from cash balance per books Add to cash balance per bank Deduct from cash balance per bank B C D E Does not affect the bank reconciliation Items: 1. Outstanding checks. 2. Bank service charge. 3. Check for $320 correctly written and paid by the bank but incorrectly entered in the cash payments journal for $230. 4. Deposit in transit.
sing the code letters below, indicate how each of the items listed would be handled in preparing a bank reconciliation. Enter the appropriate code letter in the space to the left of each item. Code A Add to cash balance per books Deduct from cash balance per books Add to cash balance per bank Deduct from cash balance per bank B C D E Does not affect the bank reconciliation Items: 1. Outstanding checks. 2. Bank service charge. 3. Check for $320 correctly written and paid by the bank but incorrectly entered in the cash payments journal for $230. 4. Deposit in transit.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Using the code letters below, indicate how each of the items listed would be handled in preparing a bank
reconciliation. Enter the appropriate code letter in the space to the left of each item.
Code
A
Add to cash balance per books
Deduct from cash balance per books
Add to cash balance per bank
Deduct from cash balance per bank
В
C
D
E
Does not affect the bank reconciliation
Items:
1.
Outstanding checks.
2.
Bank service charge.
3.
Check for $320 correctly written and paid by the bank but incorrectly entered in
the cash payments journal for $230.
4.
Deposit in transit.
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