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Indicate How Each Situation Will Affect the Bank Reconciliation Process

Question 7

Matching

Indicate how each situation will affect the bank reconciliation process.

Premises:

Responses:

deposit in transit

Add to bank balance

bank service charge

Deduct from bank balance

NSF check

Add to checkbook balance

Check written for $95 recorded on the company's ledger as $59

Deduct from checkbook balance

Outstanding checks

Check written for $80 recorded as $800

Check printing charges

Interest earned on checking account

Premises:

deposit in transit

bank service charge

NSF check

Check written for $95 recorded on the company's ledger as $59

Outstanding checks

Check written for $80 recorded as $800

Check printing charges

Interest earned on checking account

Responses:

Add to bank balance

Deduct from bank balance

Add to checkbook balance

Deduct from checkbook balance

Correct Answer:

Premises:

Responses:

deposit in transit

bank service charge

NSF check

Check written for $95 recorded on the company's ledger as $59

Outstanding checks

Check written for $80 recorded as $800

Check printing charges

Interest earned on checking account