Adjustments to the balance per books
Required
Identify which of the following items are added to or subtracted from the unadjusted book balance to arrive at the true cash balance. Distinguish the additions from the subtractions by placing a 1 beside the items that are added to the unadjusted book balance and a + beside those that are subtracted from it. The first item is recorded as an example.
|
Reconciling Items |
Book Balance |
Added or |
|
Interest revenue |
Yes |
+ |
|
Deposits in transit |
||
|
Debit memo |
||
|
Bank service charge |
||
|
Charge for checks |
||
|
NSF check from customer |
||
|
Note receivable collected by the bank |
||
|
Outstanding checks |
||
|
Credit memo |