(1) Bank reconciliation : Bank statement is prepared by bank. The company maintains its own records from its perspective. This is why the cash balance per bank and cash balance per books seldom agree. Bank reconciliation is the statement prepared by company to remove the differences and disagreement between cash balance per bank and cash balance per books. To indicate : The treatment of outstanding checks on bank reconciliation statement

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Answer 1

Question

Chapter 7, Problem 7.3DIE

To determine

(1)

Bank reconciliation: Bank statement is prepared by bank. The company maintains its own records from its perspective. This is why the cash balance per bank and cash balance per books seldom agree. Bank reconciliation is the statement prepared by company to remove the differences and disagreement between cash balance per bank and cash balance per books.

To indicate: The treatment of outstanding checks on bank reconciliation statement

(2)

To determine

To indicate: The treatment of deposits in transit on bank reconciliation statement

(3)

To determine

To indicate: The treatment of erroneously charged check by bank

(4)

To determine

To indicate: The treatment of debit memorandum by bank (service charge) on bank reconciliation statement

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Roger Richman owns Richman Blankets.Answer thw following questions. (a) He asks you to explain how he should treat the following reconciling items when reconciling the company’s bank account. 1. Outstanding checks. Deduct from balance per bankAdd to balance per booksAdd to balance per bankDeduct from balance per books 2. A deposit in transit. Deduct from balance per bankAdd to balance per booksDeduct from balance per booksAdd to balance per bank 3. The bank charged to the company account a check written by another company. Add to balance per bankDeduct from balance per booksDeduct from balance per bankAdd to balance per books 4. A debit memorandum for a bank service charge.…

Roger Richman owns Richman Blankets.He asks you to explain how he should treat the following reconciling items when reconciling the company’s bank account. Choose the answer on the right. 1. Outstanding checks. Add to balance per bank/Deduct from balance per books/Add to balance per books/Deduct from balance per bank 2. A deposit in transit. Add to balance per books/Deduct from balance per books/Deduct from balance per bank/Add to balance per bank 3. The bank charged to the company account a check written by another company. Add to balance per bank/Deduct from balance per books/Add to balance per books/Deduct from balance per bank 4. A debit memorandum for a bank service charge. Add to balance per books/Deduct from balance per bank/Add to balance per bank/Deduct from balance per books

In the normal operation of business, you receive a check from a customer and deposit it into your checking account. With your bank statement, you are advised that this check for $775 is "NSF." The bank also informs you that due to the amount of activity on your business account the monthly service charge is $75. During a bank reconciliation, you will Oa. add both values to balance according to bank Ob. add both values to balance according to books Oc. subtract both values from balance according to books Od. subtract both values from balance according to bank

Answer 2

Question

Chapter 7, Problem 7.3DIE

To determine

(1)

Bank reconciliation: Bank statement is prepared by bank. The company maintains its own records from its perspective. This is why the cash balance per bank and cash balance per books seldom agree. Bank reconciliation is the statement prepared by company to remove the differences and disagreement between cash balance per bank and cash balance per books.

To indicate: The treatment of outstanding checks on bank reconciliation statement

(2)

To determine

To indicate: The treatment of deposits in transit on bank reconciliation statement

(3)

To determine

To indicate: The treatment of erroneously charged check by bank

(4)

To determine

To indicate: The treatment of debit memorandum by bank (service charge) on bank reconciliation statement

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Answer 3

Question

Chapter 7, Problem 7.3DIE

To determine

(1)

Bank reconciliation: Bank statement is prepared by bank. The company maintains its own records from its perspective. This is why the cash balance per bank and cash balance per books seldom agree. Bank reconciliation is the statement prepared by company to remove the differences and disagreement between cash balance per bank and cash balance per books.

To indicate: The treatment of outstanding checks on bank reconciliation statement

(2)

To determine

To indicate: The treatment of deposits in transit on bank reconciliation statement

(3)

To determine

To indicate: The treatment of erroneously charged check by bank

(4)

To determine

To indicate: The treatment of debit memorandum by bank (service charge) on bank reconciliation statement

Expert Solution & Answer

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Answer 4

Question

Chapter 7, Problem 7.3DIE

To determine

(1)

Bank reconciliation: Bank statement is prepared by bank. The company maintains its own records from its perspective. This is why the cash balance per bank and cash balance per books seldom agree. Bank reconciliation is the statement prepared by company to remove the differences and disagreement between cash balance per bank and cash balance per books.

To indicate: The treatment of outstanding checks on bank reconciliation statement

(2)

To determine

To indicate: The treatment of deposits in transit on bank reconciliation statement

(3)

To determine

To indicate: The treatment of erroneously charged check by bank

(4)

To determine

To indicate: The treatment of debit memorandum by bank (service charge) on bank reconciliation statement

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Answer 5

Chapter 7, Problem 7.3DIE

To determine

(1)

Bank reconciliation: Bank statement is prepared by bank. The company maintains its own records from its perspective. This is why the cash balance per bank and cash balance per books seldom agree. Bank reconciliation is the statement prepared by company to remove the differences and disagreement between cash balance per bank and cash balance per books.

To indicate: The treatment of outstanding checks on bank reconciliation statement

(2)

To determine

To indicate: The treatment of deposits in transit on bank reconciliation statement

(3)

To determine

To indicate: The treatment of erroneously charged check by bank

(4)

To determine

To indicate: The treatment of debit memorandum by bank (service charge) on bank reconciliation statement

Answer 6

Chapter 7, Problem 7.3DIE

To determine

(1)

Bank reconciliation: Bank statement is prepared by bank. The company maintains its own records from its perspective. This is why the cash balance per bank and cash balance per books seldom agree. Bank reconciliation is the statement prepared by company to remove the differences and disagreement between cash balance per bank and cash balance per books.

To indicate: The treatment of outstanding checks on bank reconciliation statement

Answer 7

Chapter 7, Problem 7.3DIE

To determine

(1)

Bank reconciliation: Bank statement is prepared by bank. The company maintains its own records from its perspective. This is why the cash balance per bank and cash balance per books seldom agree. Bank reconciliation is the statement prepared by company to remove the differences and disagreement between cash balance per bank and cash balance per books.

To indicate: The treatment of outstanding checks on bank reconciliation statement

Answer 8

(2)

To determine

To indicate: The treatment of deposits in transit on bank reconciliation statement

Answer 9

(2)

To determine

To indicate: The treatment of deposits in transit on bank reconciliation statement

Answer 10

(3)

To determine

To indicate: The treatment of erroneously charged check by bank

Answer 11

(3)

To determine

To indicate: The treatment of erroneously charged check by bank

Answer 12

(4)

To determine

To indicate: The treatment of debit memorandum by bank (service charge) on bank reconciliation statement

Answer 13

(4)

To determine

To indicate: The treatment of debit memorandum by bank (service charge) on bank reconciliation statement

Answer 14

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Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 7 - A local hank reported that it lost 150,000 as the...Ch. 7 - Prob. 2Q Ch. 7 - Prob. 3Q Ch. 7 - Prob. 4Q Ch. 7 - Prob. 5Q Ch. 7 - Prob. 6Q Ch. 7 - Prob. 7Q Ch. 7 - Prob. 8Q Ch. 7 - Prob. 9Q Ch. 7 - Prob. 10Q

Solution Summary: The author explains that bank reconciliation is the statement prepared by company to remove the differences and disagreement between cash balance per bank and books.

Concept explainers

To indicate: The treatment of deposits in transit on bank reconciliation statement

To indicate: The treatment of erroneously charged check by bank

To indicate: The treatment of debit memorandum by bank (service charge) on bank reconciliation statement

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Chapter 7 Solutions