Question

 Exercise 6-9 Bank reconciliation and adjusting entries LO P3

 A table for a monthly bank reconciliation dated September 30 is given below. For each item 1 through 12, indicate whether the item should be added to or deducted from the book or bank balance, or whether it should not appear on the reconciliation.

 1. NSF check from customer is returned on September 25 but not yet recorded by this company.

 2 Interest earned on the September cash balance in the bank

 3 Deposit made on September 5 and processed by the bank on September 6.

 4. Checks written by another depositor but charged against this company's account.

 5. Bank service charge for September.

 6 Checks outstanding on August 31 that cleared the bank in September.

 7. Check written against the company's account and cleared by the bank, erroneously not

 recorded by the company's recordkeeper.

 8 Principal and interest on a note receivable to this company is collected by the bank but not yet recorded by the company.

 9 Checks written and mailed to payees on October 2.

 10 Checks written by the company and mailed to payees on September 30.

 11 Night deposit made on September 30 after the bank closed

 12. Special bank charge for collection of note in part 8 on this company's behalf.

Answer 1

Solution:

1. Deducted from book balance

2. Added to Book balance

3. Not appear

4. Added to bank balance

5. Deducted from book balance

6. Not appear

7. Deducted from book balance

8. Added to book balance

9. Not appear

10. Deducted from bank balance

11. Added to bank balance

12. Deducted from book balance

Answer 2

SOLUTION 

1. Deduct from book balance

2. Add to book balance

3. No adjustments

4. Add to bank balance.

5. Deduct from book balance

6. No adjustments

7. Deduct from book balance

8. Add to book balance

9. No adjustment for September book balance

10. Deduct from bank balance

11. Add to bank balance

12. Deduct from book balance.