37) When adjustments are made to the bank balance when completing a bank reconciliation, a journal entry is needed to bring the bank balance up to date.
38) Transferring money without paper checks is called electronic funds transfer.
39) If a check marked NSF is returned from the bank, an adjusting entry crediting cash is needed.
40) Construct the bank reconciliation for Kendra’s Tutoring, as of October 31, from the following information:
Ending checkbook balance$740
Ending bank statement balance540
Deposits in transit440
Bank service charge (debit memo)40
41) From the following information, prepare the bank reconciliation for Paul’s Photography Studio for June.
Ending checkbook balance$90
Ending bank statement balance30
Deposits in transit90
42) Construct the bank reconciliation for Mitter Company as of July 31, from the following information:
a. Balance per bank statement$9,150
b. Deposit in transit705
c. Checkbook balance9,250
d. Outstanding checks800
e. NSF check (debit memo)220
f. Service charges115
g. Interest earned on account140
43) Prepare a bank reconciliation from the following information:
a. Balance per bank statement of February$4,325
b. Checkbook balance4,750
c. Collection of note by bank500
d. Service charges110
e. Deposit in transit2,140
f. Outstanding checks1,325