Matching
Indicate how each of the items listed would be handled in preparing a bank reconciliation
Premises:
Outstanding checks.
Bank service charge.
Check for $320 correctly written and paid by the bank but incorrectly entered in the cash payments journal for $230.
Deposit in transit.
Bank returns deposited check marked NSF.
Bank collects notes receivable and interest for depositor.
Bank debit memorandum for check printing fees.
Petty cash custodian has $91 in paid petty cash vouchers that have not been reimbursed.
Bank charged a check against the company which should have been charged to another company.
A check for $158 was correctly paid by the bank but was incorrectly entered in the cash payments journal for $185.
Responses:
Add to cash balance per books
Deduct from cash balance per books
Add to cash balance per bank
Deduct from cash balance per bank
Does not affect the bank reconciliation
Correct Answer:
Premises:
Responses:
Outstanding checks.
Bank service charge.
Check for $320 correctly written and paid by the bank but incorrectly entered in the cash payments journal for $230.
Deposit in transit.
Bank returns deposited check marked NSF.
Bank collects notes receivable and interest for depositor.
Bank debit memorandum for check printing fees.
Petty cash custodian has $91 in paid petty cash vouchers that have not been reimbursed.
Bank charged a check against the company which should have been charged to another company.
A check for $158 was correctly paid by the bank but was incorrectly entered in the cash payments journal for $185.
Premises:
Outstanding checks.
Bank service charge.
Check for $320 correctly written and paid by the bank but incorrectly entered in the cash payments journal for $230.
Deposit in transit.
Bank returns deposited check marked NSF.
Bank collects notes receivable and interest for depositor.
Bank debit memorandum for check printing fees.
Petty cash custodian has $91 in paid petty cash vouchers that have not been reimbursed.
Bank charged a check against the company which should have been charged to another company.
A check for $158 was correctly paid by the bank but was incorrectly entered in the cash payments journal for $185.
Responses:
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