Indicate how each of the following items would be shown on the bank reconciliati

Question

Indicate how each of the following items would be shown on the bank reconciliation for Shaggy Company at December 31, 2006.

1. A check written on the account of Shappy Company was mistakenly cleared on our account.
2. The bank statement included a debit memorandum for a check printing charge.
3. Cash deposited for the last two days in December was not included in the bank balance.
4. The bank collected a note receivable plus interest on our behalf.
5. A check received from one of our customers was returned NSF.
6. Six checks written by the company had not yet cleared the bank as of the statement date.
7. The statement included a debit memorandum for an EFT to a supplier.
8. The statement included a debit memorandum for the December service charge.

Explanation / Answer

Balance as per bank statement(end of period)                                    $$$ Add: Mistakenly cleared instead of shaggy company   $$$ Cash deposied   not included in the bank balance        $$$                 $$$                                                                                                         -----                                                                                          -------             $$$ Deduct: cheque printing charges                                  $$$              Bank charges                                                 $$$ Cheques deposited but not cleared                              $$$                 $$$                                                                                 -------            -------- Correct cash balance                                                                        $$$                                                                                                       --------                                                                                                       ---------    Balance as per depositor's books                                                      $$$ Add: Bank collected a note receivable                          $$$               $$$                                                                                   ------         ----------- Deduct: NSF cheque returned                                      $$$ Debit memorandum for an EFT                                     $$$ Debit memorandum for Servicecharge                            $$$                                                                               Correct cash balance                                                                        $$$                                                                                                     ----------                                                                                                     ----------

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