Question

Match each Bank Reconciliation terms with one of the Correction items listed below. You will determine if the reconciliation item goes with the Bank Balance or Book Balance and then determine if it will increase cash or decrease cash. 1. Bank Balance - Increase Cash Balance 2. Bank Balance - Decrease Cash Balance 3. Book Balance - Increase in Cash Balance 4. Book Balance - Decrease in Cash Balance Deposits in Transit Choose Bank Service Charge Chose Choose Outstanding Checks Choose Non-Sufficient Funds Check Returned Choose < Note Collected by the Bank for your Company Choose V Interest Earned | Choose < The Company recorded a paid check in the amount of $350.00 for 5530.00 in Error Choose The Bank Deposited $150.00 into your account in Error 1 Choose

Answer 1

Deposit in transit	1	Bank Balance- Increase in Cash balance
Bank Service Charge	4	Book Balance- Decrease in Cash balance
Outstanding Checks	2	Bank Balance- Decrease in Cash balance
Non-Sufficient funds check returned	4	Book Balance- Decrease in Cash balance
Note collected by the bank for your company	3	Book Balance- Increase in Cash balance
Interest earned	3	Book Balance- Increase in Cash balance
The company recorded a paid check in the amount of $350000 for $53000 in error	4	Book Balance- Decrease in Cash balance
The bank deposited $15000 into your account in error	2	Bank Balance- Decrease in Cash balance