Answer: a. Outstanding checks - affects bank reconciliation and represents a subtraction.
b. Debit memos - affects bank and represents a subtraction.
c. NSF checks - affects bank and represents a subtraction.
d. Unrecorded deposits - affects bank reconciliation and represents an addition.
e. Interest on cash balance affects bank and represents an addition.
f. Credit memos - affects bank and represents an addition.
g. Bank service charges - affects bank reconciliation and represents a subtraction.
Answer:
a. Outstanding Checks – bank; subtraction from a bank reconciliation.
b. Debit memos – book; subtraction from a bank reconciliation.
c. NSF checks – book; subtraction from a bank reconciliation.
d. Unrecorded deposits – bank; addition to a bank reconciliation.
e. Interest on cash balance – book; addition to a bank reconciliation.
f. Credit memos – book; addition to a bank reconciliation.
g. Bank service charges – book; subtraction from a bank reconciliation.
Explanation:
a. Outstanding checks – (i)This affects the bank side of a bank reconciliation. (ii) It represents a subtraction in a bank reconciliation.
b. Debit memos – (i) This affects the book side of a bank reconciliation. (ii) It represents a subtraction in a bank reconciliation.
c. NSF cheeks – (i) This affects the book side of a bank reconciliation. (ii) It represents a subtraction in a bank reconciliation.
d. Unrecorded deposits – This affects the bank side of a bank reconciliation. (ii) It represents an addition in a bank reconciliation.
e. Interest on cash balance – This affects the book side of a bank reconciliation. (ii) It represents an addition in a bank reconciliation.
f. Credit memos – This affects the book side of a bank reconciliation. (ii) It represents a addition in a bank reconciliation.
g. Bank service charges – This affects the book side of a bank reconciliation. (ii) It represents a subtraction in a bank reconciliation.
