The Following Are Examples of Items That Appear on a Bank

question 82

Essay

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 earnings
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:

FICA-OASDI

Tax contributions made by both employees and employers to fund the Social Security program, covering retirement, disability, and survivorship benefits under the Federal Insurance Contributions Act.

FICA Tax Rate

The combined rate for Social Security and Medicare taxes that employers and employees must pay on wages.

OASDI

Old-Age, Survivors, and Disability Insurance, a comprehensive federal benefits program that includes retirement, disability, and survivors benefits.

State Income Tax

A tax levied by a state on the income of its residents and businesses operating within its jurisdiction.