Following are seven items a through g that would cause Xavier Company\'s book ba
ID: 2452992 • Letter: F
Question
Following are seven items a through g that would cause Xavier Company's book balance of cash to differ from its bank statement balance of cash.
a. A service charge imposed by the bank.
b. A check listed as outstanding on the previous period's reconciliation and still outstanding at the end of this month.
c. A customer's check returned by the bank is marked "Not Sufficient Funds. (NSF)"
d. A deposit that was mailed to the bank on the last day of the current month and is unrecorded on this month's bank statement.
e. A check paid by the bank at its correct $190 amount was recorded in error in the company's Check Register at $109.
f. An unrecorded credit memorandum indicated that bank had collected a note receivable for Xavier Company and deposited the proceeds in the company's account.
g. A check was written in the current period that is not yet paid or returned by the bank.
Indicate where each item a through g would appear on Xavier Company's bank reconciliation by placing its identifying letter in the parentheses in the proper section of the form below
Explanation / Answer
solution :
bank statement balance of cash
add:
d
deduct :
b
g
reconciliation balance
book balance of cash
add:
f
deduct :
a
c
e
reconciliation balance
bank statement balance of cash
add:
d
deduct :
b
g
reconciliation balance