The following items could appear on a bank reconciliation: Outstanding checks, $670. Deposits in transit, $1,500. NSF check from customer, no. 548, for $175. Bank collection of note receivable of...

The following items could appear on a bank reconciliation:

1. Outstanding checks, $670.


2. Deposits in transit, $1,500.


3. NSF check from customer, no. 548, for $175.


4. Bank collection of note receivable of $800, and interest of $80.


5. Interest earned on bank balance, $20.


6. Service charge, $10.


7. The business credited Cash for $200. The correct amount was $2,000.


8. The bank incorrectly decreased the business’s account by $350 for a check written by another business.

Classify each item as (1) an addition to the book balance, (2) a subtraction from the book balance. (3) an addition to the bank balance, or (4) a subtraction from the bank balance.