To arrive at an accurate balance on a bank reconciliation statement, a bank serv

ID: 2471443 • Letter: T

Question

To arrive at an accurate balance on a bank reconciliation statement, a bank service charge should be:

a. added to the bank statement balance.

b. added to the book balance.

c. deducted from the bank statement balance.

d. deducted from the book balance.

To arrive at the correct adjusted balance on a bank reconciliation statement, deposits in transit should be:

a. added to the bank statement.

b. added to the book balance.

c. deducted from the bank statement.

d. deducted from the book balance.

After a bank reconciliation statement is completed, a journal entry would need to be made to record:

a.outstanding checks.

b. deposits in transit.

c. the bank statement balance.

d. a bank service charge.

The journal entry to record a credit customer's check returned by the bank marked "NSF" would include:

a. a debit to Miscellaneous Expense and a credit to Cash.

b. a debit to Accounts Receivable and a credit to Accounts Payable.

c. a debit to Accounts Receivable and a credit to Cash.

d. a debit to Cash and a credit to Accounts Receivable.

1)Correct option is " D" -Deducted from book balance

As bank has already debited in bank statement we also have to deduct such charge.

2)correct option is "A" -Added to bank balance

3)correct option is "D" -Bank service charge

As such charges is not recorded until reconcilation is made .

4)correct option is "C" -a debit to Accounts Receivable and a credit to Cash.

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.