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

Outstanding checks280

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

Outstanding checks40

Service Charge10

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

 

 

 



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