Identify the errors in the books and provide means to rectify them.

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Chapter 4, Problem 56PB

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Identify the errors in the books and provide means to rectify them.

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Analyze the following errors that appeared on Black Electric’s bank statement and in the accounting records: a. The bank recorded a deposit of $30 as $300. b. The company’s bookkeeper mistakenly recorded a deposit of $250 as $520. c. The company’s bookkeeper mistakenly recorded a payment of $450 received from a customer as $540 on the bank deposit slip. The bank caught the error and made the deposit for the correct amount. d. The bank statement shows a check that was written by the company for $392 was erroneously paid (cleared the account) as $329. e. The bookkeeper wrote a check for $275 but erroneously wrote down $257 as the cash disbursement in the company’s records. Requirement For each error, describe how the correction would be shown on the company’s bank reconciliation.

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For which of the following errors would the appropriate amount be added to the balance per books on a bank reconciliation? Deposit of $770 recorded by the bank as $77. O Check written for $73, but recorded by the company as $37. O A returned $470 check recorded by the bank as $47. Check written for $57, but recorded by the company as $75.