Indicate the Effect on a Monthly Bank Reconciliation of Each

question 59

Essay

Indicate the effect on a monthly bank reconciliation of each of the items listed below by placing the appropriate letter to the left of each item.
A. Addition to the balance in the company's Cash account.
B. Deduction from the balance in the company's Cash account.
C. Addition to the balance on the bank statement.
D. Deduction from the balance on the bank statement.
E. Does not affect the reconciliation. $$\begin{array} { | c | l | } \hline \underline{\quad\quad}1 . & \text { The monthly service fee charged by the bank. } \\\hline\underline{\quad\quad} 2 . & \begin{array} { l } \text { Another company's cheque erroneously charged against the company's bank } \\\text { balance on the bank statement. }\end{array} \\ \hline \underline{\quad\quad}3 . & \text { A customer's cheque returned by the bank marked NSF. } \\ \hline\underline{\quad\quad} 4 . & \text { A deposit in transit. } \\\hline \underline{\quad\quad}5 . & \text { A note collected by the bank during the month on behalf of the company. } \\ \hline \underline{\quad\quad}6 . & \text { An outstanding cheque. } \\\hline \underline{\quad\quad}7 . & \begin{array} { l } \text { A company recorded a cheque as a credit to its cash account in the books. The } \\\text { cheque was recorded for } \$ 360 \text { but it was actually written to a supplier for } \$ 630 . \\\text { Assume the bank correctly recorded this cheque for } \$ 630 \text { when cleared. }\end{array} \\\hline\end{array}$$

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Definitions:

Heated Conversation

An intense or emotionally charged discussion, often involving disagreement or conflict.

Jab

A quick, sharp punch, often used in boxing or as a metaphor for a pointed remark or criticism.

Modified Comparative Negligence

A legal principle that reduces the amount of damages that a plaintiff can recover based on the percentage of fault attributed to that plaintiff.

Fault Percentage

The proportion of blame assigned to each party involved in an accident or legal dispute, affecting liability and compensation calculations.