The following items could appear on a bank reconciliation:

a. Outstanding checks

b. Deposits in transit

c. NSF check

d. Bank collection of our note receivable

e. Interest earned on bank balance

f. service charge

g. book error: We creditied Cash for $200. The correct amount was $2,000.

h. Bank error: The bank decreased our account for a check written by another customer.

Requirement

R1. 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.

Question

Piper Nelson

Business

31 March, 12:14

The following items could appear on a bank reconciliation:

a. Outstanding checks

b. Deposits in transit

c. NSF check

d. Bank collection of our note receivable

e. Interest earned on bank balance

f. service charge

g. book error: We creditied Cash for $200. The correct amount was $2,000.

h. Bank error: The bank decreased our account for a check written by another customer.

Requirement

R1. 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.

+4

Answers (1)

Know the Answer?

Jaxson Yoder · Answer 1

1) Outstanding checks : a subtraction from the bank balance

2) Deposits in transit : an addition to the bank balance

3) NSF (Not Sufficient funds) checks : a subtraction from the book balance

4) Bank collection of our note receivable : an addition to the book balance

5) Interest earned on bank balance : an addition to the book balance

6) Service charge : a subtraction from the book balance

7) Book error : a subtraction from the book balance

8) Bank error : an addition to the bank balance