Chapter 11: The Bank Reconciliation

Matching your check stub/Cash in Bank records with the statement from the bank is known as

• Bank Summary

• Posting to the Ledger

• Bank Reconciliation

• Journalizing

What is the correct order to complete a bank reconciliation?

• List outstanding checks

• Add the outstanding deposits

• Subtract the outstanding checks

• Enter the bank balance

• Record service charge and other fees on check stub

A ​ (a)   ​is on that has been recorded in both the check stub and on the bank statement. An ​ (b)   is one that is recorded in the check stub but not on the bank statement. Finally, an ​ (c)   is one that is recorded as a deposit on the check stub and dishonored by the bank.

• canceled check
• outstanding check
• NSF check
• Voided Check
• outstanding deposit

Outstanding checks and voided checks are the most frequent causes for differences between the bank statement balance and the checkbook balance.

• True

• False

Outstanding checks and outstanding deposits are the most frequent causes for differences between the bank statement balance and the checkbook balance.

• True

• False

Prompt reconciliation of the bank statement is a good way to guard against disorderly cash records or cash loss.

• True

• False

Nov. 30

A bank service fee of $12 was charged to the Abrams Tree Service account and appeared on its bank statement.

What is the debit in this journal entry?

• Cash in Bank

• A/R - Abrams Tree Service

• Service Charge Expense

• Miscellaneous Expense

What is the impact of the following item when reconciling?

Outstanding deposit of $1,200

• Added to the check stub

• Deducted from the check stub

• Added to the bank statement balance

• Deducted from the bank statement balance

What is the impact of the following item when reconciling?

An NSF check from customer Anne Campbell for $52

• Added to the check stub

• Deducted from the check stub

• Added to the bank statement balance

• Deducted from the bank statement balance

What is the impact of the following item when reconciling?

An outstanding check for $185 written to Cole Realty

• Added to the check stub

• Deducted from the stub

• Added to the bank statement balance

• Deducted from the bank statement balance