QS 8-6 Bank reconciliation?

Question

QS 8-6

Bank reconciliation

1. For each of the following items, indicate whether its amount (i) affects the bank or book side of

a bank reconciliation and (ii) represents an addition or a subtraction in a bank reconciliation:

a. Outstanding checks d. Unrecorded deposits g. Bank service charges

b. Debit memos e. Interest on cash balance

c. NSF checks f. Credit memos

2. Which of the items in part 1 require an adjusting journal entry?

HELP?

Answer 1

a. Outstanding checks

(i) bank side

(ii) subtraction

b. Debit memos

(i) book side

(ii) subtraction

c. NSF checks

(i) book side

(ii) subtraction

d. Unrecorded deposits

(i) bank side

(ii) addition

e. Interest on cash balance

(i) book side

(ii) addition

f. Credit memos

(i) book side

(ii) addition

g. Bank service charges

(i) book side

(ii) subtraction

2. Which of the items in part 1 require an adjusting journal entry?

All items affecting the book side would require journal entries.