Bank Reconciliation Statement

Checks that have been written by a company but have not yet been charged to the company's checking account are referred to as ___________checks.

1.A company's receipts from September 30 that get deposited to the company's bank account on October 1st are referred to as deposits __________as of September 30.

A general guide for reconciling the bank statement is "Put the item where it ____".

1.A company's Cash account has a balance of $851 as of October 31. The bank statement for this account reports a balance of $1,430 as of October 31. There are outstanding checks totaling $840 and a deposit in transit of $60. The bank statement shows interest earned of $19, service charges of $30, a customer's returned check of $100, and a check printing fee of $90. The reconciled Cash balance that should be reported on the company’s balance sheet as of October 31 is $____.

A ______ is a document issued by the seller of goods or services to the buyer, reducing the amount that the buyer owes to the seller.

Which of the following is NOT one of the Forms of Bank Reconciliation Statement?

• Adjusted Balance Method

• Book to Bank Method

• Bank to Book Method

• Subledger Book Method

What are the Book Reconciling Items?

• Credit Memos

• Debit Memos

• Errors

• All of the above

Which of the following is included in the Bank Reconciling Items?

• Notes Receivable

• Bank Fee

• Deposit in Transit

• NSF

Which of following statements is FALSE about Bank Reconciliation Statement?

• Prepared daily because the bank provides the depositor with the bank statement at the end of every month

• The source document for bank reconciliation is the bank statement coming from the bank

• A monthly report of the bank to the depositor showing the cash balance per bank at the beginning.

• The deposits acknowledged, checks paid, other charges and credits and the daily cash balance per bank during the month.

Under this method, the Book Balance and the Bank Balance are brought to a correct cash balance that must appear on the Balance Sheet.

• Adjusted Balance Method

• Book to Bank Method

• Bank to Book Method

• None of the above