True or False. 13. Deposit in transit is a reconciling item added to the unadjusted book balance. 14. Outstanding check is a reconciling item deducted from the unadjusted bank balance. 15. Adjusting journal entries are prepared based on the reconciling items on the bank side of the bank reconciliation.

True or False. 13. Deposit in transit is a reconciling item added to the unadjusted book balance. 14. Outstanding check is a reconciling item deducted from the unadjusted bank balance. 15. Adjusting journal entries are prepared based on the reconciling items on the bank side of the bank reconciliation.

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 3MC

See similar textbooks

Similar questions

Which of the following items are found on a book side of the bank reconciliation? A. beginning bank balance B. outstanding checks C. interest income D. error made by bank
Prepare the journal entry required to reconcile the book balance to the bank balance.
Prepare the journal entry to reconcile the bank statement in EB7.
Which of the following does not explain the differences between the bank statement balance and the customers cash balance? a. Deposit in transit b. Canceled checks c. An NSF check d. Errors e. Interest income
In a bank reconciliation, an outstanding check isa. deducted from the book balance.b. deducted from the bank balance.c. added to the bank balance.d. added to the book balance.
True or False. 9. An NSF check is a reconciling item that does not require an adjusting entry in the books of the depositor.10. Adjusting journal entries are prepared based on the reconciling items on the bank side of the bank reconciliation.11. A bank statement is prepared by the depositor to reconcile the difference between his records and bank records.
In a bank reconciliation, a bank service charge for printing checks is: A. added to the bank balance. B. added to the book balance. C. subtracted from the book balance. D. suthrachod from the bank balance.
If a bookkeeper mistakenly recorded a $73 deposit as $37, the error would be shown on the bank reconciliation as a O A. $36 deduction from the book balance. O B. $37 addition to the book balance. O C. $36 addition to the book balance. O D. $37 deduction from the book balance.
If a bookkeeper mistakenly recorded a $73 deposit as $37, the error would be shown onthe bank reconciliation as aa. $36 deduction from the book balance.b. $37 addition to the book balance.c. $36 addition to the book balance.d. $37 deduction from the book balance
In preparing a bank reconciliation, outstanding checks are deducted from the balance per bank. added to the balance per bank. deducted from the balance per books. added to the balance per books.
The journal entries for a bank reconciliation a. are taken from the "balance per bank" section only. b. may include a debit to Office Expense for bank service charges. C. may include a credit to Accounts Receivable for an NSF check. d. may include a debit to Accounts Payable for an NSF check.
The amount of the outstanding checks is included on the bank reconciliation as a(n) Select one: A. addition to the balance per bank statement B. addition to the balance per company's records C. deduction from the balance per company's records D. deduction from the balance per bank statement