The Following Are Examples of Items That Appear on a Bank

question 42

Short Answer

The following are examples of items that appear on a bank reconciliation.Classify each item as (a)an addition to the bank balance, (b)a subtraction from the bank balance, (c)an addition to the book balance,or (d)a subtraction from the book balance.
1.NSF check
2.Deposits in transit
3.Interest revenue on checking account
4.Bank error - the bank credited the company's account for a deposit made by another customer
5.EFT rent collection
6.Service charge
7.Book error - the company credited cash for $100 when the correct amount was $1,000
8.Outstanding checks
9.Bank collection of a note receivable on behalf of the company

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Definitions:

Income Statement

A financial report detailing a firm's income, costs, and earnings during a designated time frame.

Adjusted Cost

A value that has been modified from its original cost to reflect changes due to various factors, such as depreciation or amortization.

Income Statement

A report showcasing a business's fiscal results during a particular accounting cycle, which includes information on income, costs, and profit.

Manufacturing Overhead

All indirect costs associated with manufacturing, such as utilities, maintenance, and factory management salaries, not directly tied to producing a specific product.