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Indicate What Effect Each Situation Will Have on the Bank

Question 38

Matching

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

Premises:

Responses:

___ e.Outstanding checks

Deduct from checkbook balance

___ c.NSF check

Deduct from bank balance

___ a.deposit in transit

Add to checkbook balance

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

Add to bank balance

___ h.Interest earned on checking account

___ g.Check printing charges

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

___ b.bank service charge

Premises:

___ e.Outstanding checks

___ c.NSF check

___ a.deposit in transit

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

___ h.Interest earned on checking account

___ g.Check printing charges

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

___ b.bank service charge

Responses:

Deduct from checkbook balance

Deduct from bank balance

Add to checkbook balance

Add to bank balance

Correct Answer:

Premises:

Responses:

___ e.Outstanding checks

___ c.NSF check

___ a.deposit in transit

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

___ h.Interest earned on checking account

___ g.Check printing charges

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

___ b.bank service charge