The following items are from the bank reconciliation of Sunshine Co. for the mon
ID: 2380619 • Letter: T
Question
The following items are from the bank reconciliation of Sunshine Co. for the month ended February 29,2000. Where does each of these items appear in the bank reconciliation? Indicate your answer by putting the appropriate letter next to the number question:
A= an addition to the bank balance
B= a deduction from the bank balance
C= an addition to the book balance
D= a deduction from the book balance
1. Bank service charges for February
2. Outstanding checks
3. Customer's NSF check returned by the bank
4. Interest earned on this account for the month of February
5. Sunshine Co.'s bookkeeper recorded a check as $693 on the books instead of the correct amount of $963 which appeared on the bank statement.
6. Deposits in transit
7. The bank deposited $450 in Sunshine Co.'s acocunt. This amount actually belongs to Sunshade Inc.
8. The bank charaged Sunshine Co. $25 for check printing.
9. The bank collected a note receivable plus interest revenue
10. Customer's check returned by the bank because the check was improperly dated.
11. A check for $110 written by Sunshine Co. was recorded as $1,100 by the bank
12. An EFT payment was received from a customer
13. An EFT payment was made to a vendor
Explanation / Answer
1. Bank service charges for February
---D= a deduction from the book balance
2. Outstanding checks
--B= a deduction from the bank balance
3. Customer's NSF check returned by the bank
--C= an addition to the book balance
4. Interest earned on this account for the month of February
--C= an addition to the book balance
5. Sunshine Co.'s bookkeeper recorded a check as $693 on the books instead of the correct amount of $963 which appeared on the bank statement.
--D= a deduction from the book balance (300 should be deducted as check issued is for $963 as per bank)
6. Deposits in transit
--A= an addition to the bank balance
7. The bank deposited $450 in Sunshine Co.'s acocunt. This amount actually belongs to Sunshade Inc.
--B= a deduction from the bank balance
8. The bank charaged Sunshine Co. $25 for check printing.
--D= a deduction from the book balance
9. The bank collected a note receivable plus interest revenue
--C= an addition to the book balance
10. Customer's check returned by the bank because the check was improperly dated
--.D= a deduction from the book balance
11. A check for $110 written by Sunshine Co. was recorded as $1,100 by the bank
--B= a deduction from the bank balance
12. An EFT payment was received from a customer
-- C= an addition to the book balance
13. An EFT payment was made to a vendor
--D= a deduction from the book balance
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