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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Roger Richman owns Richman Blankets.
He asks you to explain how he should treat the following reconciling items when reconciling the company’s bank account. Choose the answer on the right.
1. | Outstanding checks. |
Add to balance per bank/Deduct from balance per books/Add to balance per books/Deduct from balance per bank
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2. | A deposit in transit. |
Add to balance per books/Deduct from balance per books/Deduct from balance per bank/Add to balance per bank
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3. | The bank charged to the company account a check written by another company. |
Add to balance per bank/Deduct from balance per books/Add to balance per books/Deduct from balance per bank
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4. | A debit memorandum for a bank service charge. |
Add to balance per books/Deduct from balance per bank/Add to balance per bank/Deduct from balance per books
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Expert Solution
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- Based on the he following information,preaper a blank reconciliation to determine the adjusted( corrected) balance; ( input each amount bas a positive value) Bank balance. $680 Checkbook balance. $642 Outstanding checks. $112 Direct deposit. $70 Account fees. $12 ATM withdrawal $80 Deposit in transit. $60 Interest earned. $8 Bank statement. Your checkbookarrow_forwardI need help with questionarrow_forwardQuestion 11: Which statement about making deposits is TRUE? Answer: A. B. C. D. O Funds received through sales are held in Savings, and you must move them to Checking. Funds received through sales are held in Undeposited Funds, and you must move them to your bank account. O Funds received through sales are held in Accounts Payable, and you must move them to your bank account. Funds received through sales are held in Accounts Receivable, and you must move them to your bank account.arrow_forward
- Assign the letter to indicate whether the following items would be added from the company's books or the bank statement during the construction of a bank reconciliation. Clear All Charges for some other company's safe deposit box were posted to your account A $1,000 note from one of Added to the bank your customers was statement balance collected by the bank Added the company's Interest revenue earned by books the note above EFT deposit from a customerarrow_forwardReconciliation Items per Bank - Deposits in Transit Question; What does it mean when it says to compare individual deposits on the bank statement with: 1) the deposits in transit from the preceding bank reconciliation. AND 2) the current month's deposits recorded in the company's books. Please explain e.g's would be helpful as well.arrow_forwardNeed assistancearrow_forward
- How do I solve for problem 1?arrow_forward6 Ted owns Ted's Blankets. Ted asks you to explain how he should treat the following reconciling items when reconciling the company's bank account. The bank charged to our account a check written by another company. A debit memorandum for a bank service charge. Outstanding checks. A deposit in transit.arrow_forwardHow do you record a debit card purchase in Quickbooks? A. Use the Enter Bills window to enter the information, then immediately go to the Pay Bills window and prepare th check. B. Prepare a journal entry to debit the expense account of the purchase and credit cash. C. Wait until you do the bank reconciliation and enter one journal entry for all of your debit card purchases. D. Using the Write Checks window, in the No. field,type “Debit.” Enter the vendor name and amount in the check area.arrow_forward
- Current Attempt in Progress Identify whether each of the following items would be (a) added to the book balance, or (b) deducted from the book balance in a bank reconciliation. 1. 2 3. 4. 5. EFT transfer to a supplier. Bank service charge. Check printing charge. Error recording check # 214 which was written for $260 but recorded for $620. Collection of note and interest by the bank on the company's behalf.arrow_forwardAccompanying the bank statement was a debit memorandum for an NSF check received from a customer. This item would be included on the bank reconciliation as a(n) ____.arrow_forwardMore info a. Outstanding checks, $670. b. Deposits in transit, $1,500. C. NSF check from customer, no. 548, for $175. d. Bank collection of note receivable of $800, and interest of $80. Interest earned on bank balance, $20. e. f. g. h. Service charge, $10. The business credited Cash for $200. The correct amount was $2,000. The bank incorrectly decreased the business's by $350 for a check written by another business. Xarrow_forward
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