Identify Each of the Following Reconciling Items as

question 73

Essay

Identify each of the following reconciling items as
(a) an addition to the cash balance according to the bank statement,
(b) a 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. Write "entry" by 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:

Demolish Old Building

The process of tearing down or destroying an outdated or dilapidated building, often to clear the site for new construction or uses.

Construction

The process of building or assembling infrastructure, buildings, or other substantial physical structures.

Operating Expenditure

The costs associated with the day-to-day operations of a business, including salaries, rent, and utilities.