I am a little confused. I am working on my homework and do not really know how to answer these questions. Can I get help and an explanation so I completely understand?

1. If a company's unadjusted cash balance is listed on the reconciliation incorrectly how does it affect the adjusted bank statement and the adjusted cash account book balance?



2. If the bank's collection of a $9000 note less $45 collection fee is added to the bank statement cash balance on the reconciliation how does it affect the adjusted bank statement and the adjusted cash account book balance?

If your unadjusted book balance is incorrectly recorded in the reconciliation, then your adjusted book and bank balances would not be equal, assuming that all reconciling items are correct.

The collection was made by the bank so it has already been recorded in the bank statement. Adding it again on the bank balance would be wrong. In order for the balances of the book and the bank to balance, collections of the bank must be recorded as an addition to the book.

Bank reconciliations are easy. You just have to know the reconciling items. What the bank does correctly must also be reflected on the books. The same goes the other way around.