How would the following be treated in a bank reconciliation?
Can you tell me if these answers are correct? I put my answers on the left of each question. Thanks :)
Indicate how the following items would be treated in a bank reconciliation. You may choose from the following answers:
(a) Deducted from the balance per accounting records.
(b) Added to balance per accounting records.
(c) Deducted from balance per bank statement.
(d) Added to balance per bank statement.
__d__ 1) Collection of a note receivable which you left with the bank for collection, proceeds
were deposited in your account.
__b__ 2) Deposit in transit at month-end
__a___ 3) Bank service charges.
__c___ 4) Checks outstanding at month-end
__c___ 5) Customer check deposited in the bank but returned as NSF.
__a__ 6) Error in check number 924, which was written correctly in the amount of $817 but was
recorded in the accounting records as $871, a difference of $54.
__d___ 7) Interest earned on the average balance during the month.
__d__ 8) Error in check number 931, which was written correctly in the amount of $215 but was
recorded in the accounting records as $125, a difference of $90.
