Listed below are items that may be useful in preparing the April 2019, bank reconciliation for XYZ Company. Note that: Bank statement contains an ending balance of $400,000 on March 31, 2019, whereas the companys ledger shows an ending balance of $360,900

Using the following code, insert in the space before each item the letter where the amount would be located or otherwise treated in the bank reconciliation process.

Code Located or Treated

A Add to the cash balance per books

B Deduct from the cash balance per books

C Add to the cash balance per bank

D Deduct from the cash balance per bank

E Does not affect the bank reconciliation

1- Bank statement contains a $80 service charge for operating the account? A,B,C or D?

A

B

C

D

E

2- Bank statement contains interest income of $25? A,B,C or D?

A

B

C

D

E

3- XYZ issued checks of $60,000 that have not yet been cleared by the bank? A,B,C or D?

A

B

C

D

E

4- XYZ deposited $18,000 but this did not appear on the bank statement? A,B,C or D?

A

B

C

D

E

5- A check for the amount of $530 issued to the office supplier was misreported in the cash payments journal as $350? A,B,C or D?

A

B

C

D

E

6- A note receivable of $7,800 was collected by the bank? A,B,C or D?

A

B

C

D

E

7- A check of $320 deposited by the company has been charged back as NSF? A,B,C or D?

A

B

C

D

E