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.