The following items may appear on a bank statement:1. Bank correction of an error from recording a $6,200 deposit as $2,6002. EFT payment3. Note collected for company4. Service chargeUsing the following format, indicate whether each item would appear as a debit or creditmemo on the bank statement and whether the item would increase or decrease the bal-ance of the company's account:Appears on theBank Statement asIncreases or Decreases theBalance of the Company'sBank Accounta Debit or CreditMemoItem No.

Bank reconciliation statement: Bank statement is prepared by the bank. The company maintains its own…

Answered: The following items may appear on a…

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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The bank reconciliation shows the following adjustments: Outstanding checks: $987 Error by bank recorded customer check twice: $436 Notes receivable collected by bank: $2,500; interest: $145 Deposits in transit: $1,698 Bank charges: $70 PLEASE NOTE: For similar accounting treatment (DR or CR), you are to record accounts in the order in which they are mentioned in the adjustments. Using the following accounts: Bank Errors Bank Service Charges Cash Deposits in Transit Interest Expense Interest Income Notes Receivable Outstanding Checks prepare the two correcting journal entries: DR CR and DR CR CR PLEASE NOTE: You must enter the account names exactly as written above and all dollar amounts will be with "$" and commas as needed (i.e. $12,345).
Accompanying the bank statement was a credit memorandum for a short-term note collected by the bank for the depositor. This item would be included on the bank reconciliation as a(n) ____. a.addition to the cash balance per bank b.deduction from the cash balance per books c.deduction from the cash balance per bank d.addition to the cash balance per books
This question is related to reconciliation of the Bank Statement to the General Ledger. Place the correct letter next to each number. Letters can be used more than once or not at all. a. Addition to the bank statement balance b. Deduction from the bank statement balance c. Addition to the company’s book balance d. Deduction from the company’s book balance ______ 12-1. The service charge by the bank was $8. ______ 12-2. A $1,700 note receivable was collected for the company by the bank. ______ 12-3. There were two outstanding checks totaling $3,200. ______ 12-4. A $355 NSF check drawn by a customer was deducted from the company’s bank account and returned to the company. ______12-5. A deposit of $725 was made after banking hours on March 31st. ______12-6. A check for $342 was erroneously recorded in the company’s books as $324.
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The following data were gathered to use in reconciling the bank account of Photo Op: Balance per bank... $14,500 Balance per company records.... .13,875 Bank service charges.. 75 Deposit in transit... .3,750 NSF check... 800 Outstanding checks... .5,250 What is the adjusted balance on the bank reconciliation?
The following data were gathered to use in reconciling the bank account of Reddan Company: $ 17,900 10,300 Balance per bank Balance per company records Bank service charges 40 Deposit in transit Note collected by bank with $170 interest Outstanding checks a. What is the adjusted balance on the bank reconciliation? 3,400 4,900 6,140 b. Journalize any necessary entries for Photo Op. Company based on the bank reconciliation. If an amount box does not require an entry, leave it blank.
A check written by the company for $165 is incorrectly recorded by a company as $156. On the bank reconciliation, the $-9 error should be added to the balance per books. added to the balance per bank. deducted from the balance per books. deducted from the balance per bank.
Analyze the following errors that appeared on Black Electric’s bank statement and in the accounting records: a. The bank recorded a deposit of $30 as $300. b. The company’s bookkeeper mistakenly recorded a deposit of $250 as $520. c. The company’s bookkeeper mistakenly recorded a payment of $450 received from a customer as $540 on the bank deposit slip. The bank caught the error and made the deposit for the correct amount. d. The bank statement shows a check that was written by the company for $392 was erroneously paid (cleared the account) as $329. e. The bookkeeper wrote a check for $275 but erroneously wrote down $257 as the cash disbursement in the company’s records. Requirement For each error, describe how the correction would be shown on the company’s bank reconciliation.
A check written by the company for $272 is incorrectly recorded by a company as $227. On the bank reconciliation, the $45 error should be added to the balance per bank. added to the balance per books. deducted from the balance per bank. deducted from the balance per books. O O O O
6, 7, A bank reconciliation for October 31 follows. Bank statement balance Add: Deposit in transit Deduct: Outstanding checks Adjusted bank balance View transaction list < 1 2 Note: Enter debits before credits. Date October 31 Bank Reconciliation October 31 Journal entry worksheet Cash $ 6,482 3 291 6,773 79 $ 6,694 Prepare the necessary journal entries based on the bank reconciliation. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Book balance Add: 4 Collection of a note Interest earned Deduct: NSF check Bank service charges Adjusted book balance Record the $400 collection of a note receivable by the bank on our behalf. Saved General Journal $ 400 64 Debit 63 61 $ 6,354 Credit 464 6,818 124 $6,694
Identify whether each of the following items would on appear on the bank side or the book side of a bank reconciliation. Enter Bank or Book below. Bank service charges Outstanding checks Deposits in transit NSF check Interest on a checking account The company properly wrote a check for $95.80 that the bank incorrectly paid as $9.58. The bank printed checks for the depositor for a fee. Bank debit memorandum Bank credit memorandum The bank collected a $1,000 note for the depositor.

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