Question

Recall the preparation of a bank reconciliation by selecting the correct items below. (Check all that apply.) a) Add any unrecorded bank fees to the balance per bank. b) Add deposits in transit to the balance per bank. c) Compute the adjusted book balance. d) Compute the adjusted bank balance. e) Subtract any outstanding checks from the balance per bank. e) Add the deposits in transit to the balance per books.

Answer 1

Answer:

b) Add deposits in transit to the balance per bank

c) Compute the adjusted book balance

e) Subtract any outstanding checks from the balance per bank.

Explanation:

a) Add any unrecorded bank fees to the balance per bank.- This is not true. To reconcile the bank balance to the book balance, this will be subtracted from the book balance and not added.

b) Add deposits in transit to the balance per bank. - Deposits in transit has been recognized in the books but not in the bank statement. Hence adding the deposits in transit to the balance per bank is right.

c) Compute the adjusted book balance. - True. The book balance would have to be recomputed recognizing transactions that have taken place but are yet to be recorded.

d) Compute the adjusted bank balance. - This is not needed as the balance to be reported is the balance per the books.

e) Subtract any outstanding checks from the balance per bank. - Outstanding checks are checks issued that have been deducted from the book balance but are yet to be recognized in the bank hence they will be deducted from the bank balance. True

e) Add the deposits in transit to the balance per books. - Deposits in transit has been recognized in the books but not in the bank statement. Adding would result in double recognition hence this is not true.

Answer 2

Answer:

Explanation:

- Compute the adjusted bank balance

- Add any unrecorded bank fees to the balance per bank

- Add deposits in transit to the balance per bank

-Subtract any outstanding checks from the balance per bank