Following Are Seven Items a Through G That Would Cause

question 162

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 that 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:

Obsession

An intrusive and persistent thought, urge, or image that repeatedly enters the mind, often causing distress.

Manic Episode

A period of abnormally elevated or irritable mood, increased energy, and other specific symptoms that significantly impact functioning, associated with bipolar disorder.

Autism

A neurodevelopmental disorder characterized by difficulties in social interaction, verbal and non-verbal communication, and repetitive behaviors.

Self-Absorbed

Excessively preoccupied with oneself and one's own needs, often at the expense of others.