Identify Each of the Following Reconciling Items as (A) an Addition

question 157

Essay

Identify each of the following reconciling items as (a) an addition to the cash balance according to the bank statement, (b) deduction from the cash balance according to the bank statement, (c) an addition to the cash balance according to the company's records, or (d) a deduction from the cash balance according to the company's records. Assume that none of the transactions reported by bank debit and credit memos have been recorded by the company. Also, indicate by writing "entry" by those items that will require a journal entry in the company's accounts.
1.Deposits in transit.
2.Bank service charges.
3.NSF check.
4.Outstanding checks.
5.Check for $690 incorrectly recorded by the company as $960.
6.Check for $420 incorrectly recorded by the company as $240.

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Definitions:

Milkshake

A sweet, cold beverage made from milk, ice cream, and flavorings or sweeteners such as butterscotch, caramel sauce, chocolate syrup, or fruit syrup.

Tacos

A traditional Mexican dish consisting of a corn or wheat tortilla folded or rolled around a filling.

Budget Line

A visual depiction showcasing all the potential pairings of two items that can be bought within a specific budget at fixed prices.

Consumption Bundles

Consumption bundles refer to a specific combination of goods and services that a consumer chooses based on their preferences and budget constraints.