The following items are from the bank reconciliation of Sunshine Co. for the mon
ID: 2380649 • 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
Hi,
Please find the answer as follows:
Thanks.
Outstanding checks B
Customer's NSF check returned by the bank D
Interest earned on this account for the month of February C
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. C
Deposits in transit A
The bank deposited $450 in Sunshine Co.'s acocunt.
This amount actually belongs to Sunshade Inc. B
The bank charaged Sunshine Co. $25 for check printing. D
The bank collected a note receivable plus interest revenue C
Customer's check returned by the bank because
the check was improperly dated. D
A check for $110 written by Sunshine Co. was
recorded as $1,100 by the bank A
An EFT payment was received from a customer Not Relevant Assuming Entry was
Made in Both the Books An EFT payment was made to a vendor Not Relevant Assuming Entry was
Made in Both the Books
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