Identify Whether Each of the Following Items 1 Through 10

question 20

Short Answer

Identify whether each of the following items 1 through 10 would on appear on the bank side or the book side of a bank reconciliation.
_____ 1. Bank service charges
_____ 2. Outstanding checks
_____ 3. Deposits in transit
_____ 4. NSF check
_____ 5. Interest on a checking account
_____ 6. The company properly wrote a check for $95.80 that the bank incorrectly paid as $9.58.
7. The bank printed checks for the depositor for a fee.
_____ 8. Bank debit memorandum
_____ 9. Bank credit memorandum
_____ 10. The bank collected a $1,000 note for the depositor.

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Definitions:

Selling at Par

Selling at par refers to the condition where a security is sold at its face value, not at a discount or premium.

Call Provision

A clause in a bond's contract that allows the issuer to repurchase and retire the debt before its maturity date, usually at a premium price.

Bond Issuer

An entity, often a corporation or government, that issues debt securities to raise funds.

Fisher Effect

A theory proposing that the real interest rate is equal to the nominal interest rate minus the expected inflation rate, emphasizing the relationship between inflation and real and nominal interest rates.