Identify Whether Each of the Following Items Would Be (A)

question 34

Essay

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. EFT transfer to a supplier
2. Bank service charge
3. Check printing charge
4. Error recording check # 214 which was written for $230 but recorded for $320
5. Collection of note and interest by bank on company's behalf

---

Definitions:

Noncash Asset

An asset that is not cash or does not directly translate into cash in a short period, such as property, plant, and equipment.

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders, and has its own rights and obligations.

Treasury Stock

Shares that were once part of the outstanding shares but were bought back by the company, reducing the amount of stock on the open market.

Loss On Sale

A financial term representing the situation where the selling price of an asset is less than its purchase price.