ACCTG 26 Cash and Cash Equivalents, Bank Reconciliation

A bank service charge of P 25.

• Deduct it from the bank statement balance

• Add it to the bank statement balance

• Exclude it from the reconciliation

• Add it to the checkbook balance

• Deduct from the checkbook value.

The credit of P 275 on the bank statement for semiannual interest collected by the bank for the company on pledged bonds.

• Deduct it from the bank statement balance

• Add it to the bank statement balance

• Exclude it from the reconciliation

• Add it to the checkbook balance

• Deduct from the checkbook value.

The charge of P 122 for “NSF” check

• Deduct it from the bank statement balance

• Add it to the bank statement balance

• Exclude it from the reconciliation

• Add it to the checkbook balance

• Deduct from the checkbook value.

The checks outstanding as of June 31, totaling P 5,020

• Deduct it from the bank statement balance

• Add it to the bank statement balance

• Exclude it from the reconciliation

• Add it to the checkbook balance

• Deduct from the checkbook value.

The P 625 deposit not shown in the bank statement.

• Deduct it from the bank statement balance

• Add it to the bank statement balance

• Exclude it from the reconciliation

• Add it to the checkbook balance

• Deduct from the checkbook value.

The P 4,500 proceeds of a bank loan(reflected on both the books and the bank statement

• Deduct it from the bank statement balance

• Add it to the bank statement balance

• Exclude it from the reconciliation

• Add it to the checkbook balance

• Deduct from the checkbook value.

Customer’s check returned by bank marked NSF.

• Addition to cash balance per cash account

• Addition to cash balance per bank statement

• Deduction from cash balance per cash account

• Deduction from cash balance per bank statement

• Does not affect the reconciliation of cash balances

Proceeds from a customer’s note, principal amount P 900 collected by bank collection fee of P 6 charged by bank

• Addition to cash balance per cash account

• Addition to cash balance per bank statement

• Deduction from cash balance per cash account

• Deduction from cash balance per bank statement

• Does not affect the reconciliation of cash balances

Check No. 121 had been entered in the accounts as P 2,230 but was deducted on the bank statement in the correct amount of P 2,320.

• Addition to cash balance per cash account

• Addition to cash balance per bank statement

• Deduction from cash balance per cash account

• Deduction from cash balance per bank statement

• Does not affect the reconciliation of cash balances

The current bank statement shows a deduction of P 8.00 for a new checkbook

• Addition to cash balance per cash account

• Addition to cash balance per bank statement

• Deduction from cash balance per cash account

• Deduction from cash balance per bank statement

• Does not affect the reconciliation of cash balances