Identify each of the following reconciling items as: (a) An addition to the cash balance according to
Question:
Identify each of the following reconciling items as:
(a) An addition to the cash balance according to the bank statement,
(b) A deduction from the cash balance according to the bank statement,
(c) An addition to the cash balance according to the company’s records, or
(d) A deduction from the cash balance according to the company’s records. (None of the transactions reported by bank debit and credit memos have been recorded by the company.)
1. Bank service charges, $50.
2. Check of a customer returned by bank to company because of insufficient funds, $520.
3. Check for $345 incorrectly recorded by the company as $435.
4. Check for $200 incorrectly charged by bank as $2,000.
5. Deposit in transit, $4,250.
6. Outstanding checks, $5,420.
7. Note collected by bank, $5,300.
Step by Step Answer:
Forensic And Investigative Accounting
ISBN: 9780808056300
10th Edition
Authors: G. Stevenson Smith D. Larry Crumbley, Edmund D. Fenton