Following Are Seven Items a Through G That Would Cause

question 183

Essay

Following are seven items a through g that would cause Rembrandt 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 mailed to the bank on the last day of the current month and not recorded on this month's bank statement.
e. A check paid by the bank at its correct $190 amount recorded in error in the company's check register at $109.
f. An unrecorded credit memorandum indicating that bank collected a note receivable for Rembrandt Company and deposited the proceeds in the company's account.
g. A check written in the current period that is not yet paid or returned by the bank.
Indicate where each item, letters a-g, would appear on Rembrandt 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:

Fatty Plaque

Accumulation of lipids within the walls of arteries, leading to atherosclerosis and potential cardiovascular disease.

Arteries

Blood vessels that carry oxygen-rich blood away from the heart to the rest of the body.

Cusps

Pointed or elevated features, particularly in anatomy and dentistry, such as the peaks on molars or valves in the heart.

Right Atrium

The right upper chamber of the heart that receives deoxygenated blood from the body through the venae cavae and pumps it into the right ventricle.