Select the alternative that best answers each question or completes each statement.

7. A check for $180 in payment of a debt was mistakenly recorded as $810 in the checkbook. When detecting the situation, this item must be included in the bank reconciliation as a. is added to the balance according to company records. b. is added to the balance according to the report issued by the bank. c. It is subtracted from the balance according to the report issued by the bank. d. is subtracted from the balance according to company records.

8. The company receives a check for $425 and deposits it in the bank account. Upon receipt of the account statement issued by the bank, the company is informed that the check does not have sufficient funds (NSF check). The bank also tells you that the bank service charges are $18. When preparing the bank reconciliation you should a. subtract both amounts from the balance according to the account statement issued by the bank. b. Add both amounts to the balance sheet according to your business records. c. add both amounts to the balance according to the account statement issued by the bank. d. Subtract both amounts from the balance according to your business records.

9. When preparing the bank reconciliation, the amount of deposits in transit are included as a. is added to the cash balance according to company records. b. is subtracted from the balance according to the bank statement. c. is added to the balance according to the bank statement. d. is added to the cash balance according to company records.

10. After completing the preparation of the bank reconciliation, the corresponding entry was made in the records of the company for which the increase in cash (cash) for interest income was registered and noted. Therefore, in the bank reconciliation the aforementioned situation should be included as follows: a. is subtracted from the cash balance according to company records b. is subtracted from the cash balance according to the records issued by the bank c. is added to the cash balance according to the bank register d. added to cash balance according to company records

11. When preparing the bank reconciliation, which of the following should be subtracted from the balance reflected in the account statement issued by the bank? a. outstanding checks b. deposits in transit c. receivable notes collected by the bank d. bank service charges