For each of the following items, indicate whether its amount (i) affects the bank or book side of a bank reconciiliation and (ii) represents an addition or a subtraction in a bank reconciliation:

a. outstanding checks
b. debit memos
c. NSF checks
d. Unrecorded deposits
e. Interest on cash balance
f. Credi memos
g. Bank service charges

morgaine300

We are not here to just answer your homework problems for you. You should always show that you've at least made an attempt to do your own work.

But here are some hints to hopefully help get you started.

Adjustments are done because both parties (the company, i.e. depositor, and the bank) have done things to the account that the other party does not have yet. For instance, if the company writes a check, they have recorded that check in their books. But it can take several days for it to be sent through the mail, get deposited by the receivor, get through the banking system, and actually be deducted by the bank from the company's account. Most people get this concept. But between the time the company writes the check and reduces their cash account and the time the bank gets it and reduces the company's bank balance, the two balances disagree with each other.

If you were to subtract that balance from what the bank has, then it would agree with the company's balance. So that's the point of doing the adjustments, so that you can see if the balances agree once all this is "caught up." Of course, in reality we can have several items that disagree like this, throwing those balances off from each other, so several independent adjustments may need to be made.

So you need to think about who has already recorded the transaction and who has not. Whoever recorded it already has it reflected in their balance. So that does not need adjusted as they already have it. It needs adjusted on the side of whoever does not have it, because it isn't reflected in their balance. So when deciding whose side to put it on, it's the side of who does not have it yet.

As for adding or subtracting, you just do what you normally do with that type of entry. i.e. don't try to get fancy about it. If it's an item that would normally be subtracted, then it gets subtracted, and vice versa.

The one thing throwing it all off would be error corrections, and you don't have any of those listed so I won't worry about those right now.

At least make an attempt to do your own problem, and then we can help you. If you don't understand what one of the listed items means, then ask.