44) Indicate what effect each situation will have on the bank reconciliation process. Place the number of your choice beside the items listed.

 

1. Add to bank balance

2. Deduct from bank balance

3. Add to checkbook balance

4. Deduct from checkbook balance

 

________ a. deposit in transit

________ b. bank service charge

________ c. NSF check

________ d. Check written for $95 recorded on the company’s ledger as $59

________ e. Outstanding checks

________ f. Check written for $80 recorded as $800

________ g. Check printing charges

________ h. Interest earned on checking account

45) Indicate which adjustments would require a journal entry during the completion of the bank reconciliation. Place an “X” on the respective line(s).

 

________ a. Deposit in transit

________ b. Bank service charge

________ c. NSF check

________ d. Check written for $58 recorded on the company’s ledger as $85

________ e. Outstanding checks

________ f. Check written for $42 recorded as $4

________ g. Check printing charge

________ h. Note collected by bank.

 

46) List the various steps and procedures included in the bank reconciliation process.

What are the advantages in preparing a monthly bank reconciliation?

47) Determine the reconciled bank balance given the following:

The balance per bank statement is $ 110

The balance per general ledger is $107

There is a credit memo for a note collected, $408

There is a credit memo for interest earned, $25

There is a debit memo for a customer’s NSF check $350

Deposits in transit, $850

Outstanding checks amount to $845

This month’s service charge amounts to $50

There is a debit memo for check printing fees, $25

$ ________

 

48) Determine the unadjusted balance per bank statement given the following:

The balance per general ledger is $210

There is a credit memo for a note collected, $450

There is a debit memo for interest expense, $100

There is a debit memo for a customer’s NSF check $375

Outstanding checks amount to $2,000

This month’s service charge amounts to $50

Deposits in transit amount to $1,500

$ ________

 

 

 



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