Prepare a table with the following headings for a monthly bank reconciliation dated September 30.
Bank Balance Book Balance Not Shown on the Reconciliation
Add Deduct Add Deduct Adjust
For each item 1 through 12, place an x in the appropriate column to indicate whether the item should be added to or deducted from the book or bank balance, or whether it should not appear on the reconciliation. If the book balance is to be adjusted, place a Dr. or Cr. in the Adjust column to indicate whether the Cash balance should be debited or credited. At the left side of your table, number the items to correspond to the following list.
1. NSF check from customer is returned on September 25 but not yet recorded by this company.
2. Interest earned on the September cash balance in the bank.
3. Deposit made on September 5 and processed by the bank on September 6.
4. Checks written by another depositor but charged against this company’s account.
5. Bank service charge for September.
6. Checks outstanding on August 31 that cleared the bank in September.
7. Check written against the company’s account and cleared by the bank; erroneously not recorded by the company’s recordkeeper.
8. Principal and interest on a note receivable to this company is collected by the bank but not yet recorded by the company.
9. Checks written and mailed to payees on October 2.
10. Checks written by the company and mailed to payees on September 30.
11. Night deposit made on September 30 after the bank closed.
12. Special bank charge for collection of notes in part 8 on this company’s behalf.
