Following Are Seven Items (A) Through (G) That Would Cause

question 38

Essay

Following are seven items (a) through (g) that would cause Xavier Company's book balance of cash to differ from its bank statement balance of cash.
a.A service charge imposed by the bank.
b.A check listed as outstanding on the previous period's reconciliation and still outstanding at the end of this month.
c.A customer's check returned by the bank is marked "Not Sufficient Funds.(NSF)"
d.A deposit was mailed to the bank on the last day of the current month and is unrecorded on this month's bank statement.
e.A check paid by the bank at its correct $190 amount was recorded in error in the company's Check Register at $109.
f.An unrecorded credit memorandum indicated that bank had collected a note receivable for Xavier Company and deposited the proceeds in the company's account.
g.A check was written in the current period that is not yet paid or returned by the bank.
Indicate where each item (a) through (g) would appear on Xavier Company's bank reconciliation by placing its identifying letter in the parentheses in the proper section of the form below.

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Definitions:

Formal Operational

refers to the final stage in Piaget's cognitive development theory, where individuals develop the ability to think abstractly and logically.

Centration

A cognitive limitation in early childhood, where the focus is on one aspect of a situation while ignoring others.

Preoperational

A stage in Piaget's theory of cognitive development, occurring from ages 2 to 7, where children begin to engage in symbolic play and learn to manipulate symbols but do not yet understand concrete logic.

Cognitive Life

Term not well defined in psychology, possibly referring to the mental processes and activities of an individual.