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You Are in the Process of Preparing a Bank Reconciliation

Question 99

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You are in the process of preparing a bank reconciliation for Carpenter Company as of May 31. Listed below is information necessary to prepare the reconciliation.
Required:
In the spaces provided, place the appropriate letter to indicate whether each item of information should be

Premises:

Responses:

Deposit in transit of $1,500 as of May 31.

deducted from the balance per bank statement

April service charge of $30 recorded by the company in May.

added to the balance per bank statement

Checks totaling $1,100 written in April that have not cleared the bank by May 31.

deducted from the balance per company records

Check of Tomi, Inc. for $780 deposited in May by Carpenter Company and returned by the bank with the NSF notation in May bank statement.

added to the balance per company records

Canceled check No. 205 written by Carpenter Company for $200 to Mays, Inc., had been recorded on the company's books as $2,000.

omitted from the reconciliation

Note receivable face value plus interest collected by the bank and deposited into Carpenter's account and not previously recorded by Carpenter Company.

Bank service charge of $35 for May.

Check of Carpets, Inc. charged in error against Carpenter's account by the bank during May and not corrected as of May 31.

Premises:

Deposit in transit of $1,500 as of May 31.

April service charge of $30 recorded by the company in May.

Checks totaling $1,100 written in April that have not cleared the bank by May 31.

Check of Tomi, Inc. for $780 deposited in May by Carpenter Company and returned by the bank with the NSF notation in May bank statement.

Canceled check No. 205 written by Carpenter Company for $200 to Mays, Inc., had been recorded on the company's books as $2,000.

Note receivable face value plus interest collected by the bank and deposited into Carpenter's account and not previously recorded by Carpenter Company.

Bank service charge of $35 for May.

Check of Carpets, Inc. charged in error against Carpenter's account by the bank during May and not corrected as of May 31.

Responses:

deducted from the balance per bank statement

added to the balance per bank statement

deducted from the balance per company records

added to the balance per company records

omitted from the reconciliation

Correct Answer:

Premises:

Responses:

Deposit in transit of $1,500 as of May 31.

April service charge of $30 recorded by the company in May.

Checks totaling $1,100 written in April that have not cleared the bank by May 31.

Check of Tomi, Inc. for $780 deposited in May by Carpenter Company and returned by the bank with the NSF notation in May bank statement.

Canceled check No. 205 written by Carpenter Company for $200 to Mays, Inc., had been recorded on the company's books as $2,000.

Note receivable face value plus interest collected by the bank and deposited into Carpenter's account and not previously recorded by Carpenter Company.

Bank service charge of $35 for May.

Check of Carpets, Inc. charged in error against Carpenter's account by the bank during May and not corrected as of May 31.