Asked by Hayden Spalding on May 12, 2024
Verified
Indicate whether each of the following should be (A) added to the bank statement balance, (B) subtracted from the bank statement balance, (C) added to the checkbook balance, or (D) subtracted from the checkbook when computing the reconciled balance.
a.Bank error: A deposit of $280 is shown on the statement as $250
b.NSF check returned to the depositor
c.Automatic transfer for safe deposit fee
d.Error in the checkbook: a check written for $45 was recorded as $54
e.ATM withdrawal not recorded in the depositor's records
Bank Statement Balance
The total amount of money that is available in a bank account at a particular point in time, as recorded by the bank.
Checkbook Balance
The current total amount of funds available in a checking account, reflecting all transactions that have been recorded in the checkbook ledger.
Bank Error
A mistake made by a bank in accounting transactions, deposits, withdrawals, or charges.
- Comprehend the principle of bank reconciliation and its significance in confirming the accuracy of financial transactions.
- Determine the influence of bounced checks and financial institution mistakes on individual account totals.
- Anticipate the necessary actions to correct errors found during the reconciliation process.
Verified Answer
TS
Learning Objectives
- Comprehend the principle of bank reconciliation and its significance in confirming the accuracy of financial transactions.
- Determine the influence of bounced checks and financial institution mistakes on individual account totals.
- Anticipate the necessary actions to correct errors found during the reconciliation process.