38) Match each of the following steps in the bank reconciliation process to the situations below. Some of the steps may be used more than once.
a. Add to the balance on the bank statement
b. Add to the balance on the company’s books
c. Deduct from the balance on the bank statement
d. Deduct from the balance on the company’s books
_____ 1. NSF check
_____ 2. Team Shirts correctly deposited a check for $153. The bank recorded the check as $135.
_____ 3. Outstanding checks
_____ 4. Monthly service fees charged by the bank
_____ 5. Deposits in transit
39) Put an X in the appropriate box to show how each of these items would appear on a company’s bank reconciliation. Put an asterisk (*) next to the items for which the company must record an adjusting entry:
Balance per bank
Balance per books
add to
deduct from
1.
Outstanding checks
2.
Bank service charge
3.
NSF check from a customer
4.
Deposits in transit
5.
Check #2002 was mistakenly deducted twice by the bank.
6.
Note receivable collected by the bank
7.
A check written to a supplier for $1,050 was recorded on the company's books as $1,500. The bank paid the supplier $1,050.
A check correctly written to a supplier for $1,300, and correctly recorded on the company’s books, was mistakenly paid by the bank as $1,030.
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