Using the code letters below, indicate how each of the items listed would be handled in preparing a bank reconciliation for the month of March for Unipal company. (8 points)

Code

A Add to cash balance per Banks

B Deduct from cash balance per Banks

C Add to cash balance per Book

D Deduct from cash balance per Book

E Does not affect the bank reconciliation

A check for $127 written to the company by J. Chandler was returned NSF

Answer 1

Check for $420 account Payable, was correctly written and paid by the bank but incorrectly entered in the cash payments journal for $ 240.

Answer 2

The bank statement shows an outstanding check of $,6000 at the end of the period.

Answer 3

The bank Charges Unipal company $50 for printing company checks.

Answer 4

A $ 6,000 of notes receivables was collected by the bank, less collection fee of $20. No interest had been accrued.

Answer 5

Deposits in transit totalled $5,700 at the end of the period.

Answer 6

A $3000 deposit to the company account was mistakenly added to the owner's personal account by the bank.

Answer 7

The bank statement contains a Debit memorandum for $24 service charges for the account.

Answer 8