If a company made a bank deposit on September 30 that did not appear on the bank statement dated September 30,in preparing the September 30 bank reconciliation,the company should:
A)Deduct the deposit from the bank statement balance.
B)Send the bank a debit memorandum.
C)Deduct the deposit from the September 30 book balance and add it to the October 1 book balance.
D)Add the deposit to the book balance of cash.
E)Add the deposit to the bank statement balance.

Question

Quizplus · Accepted Answer

The deposit is an outstanding deposit that has not yet been recorded by the bank, so it should be added to the bank statement balance to reconcile it with the company's records.

If a Company Made a Bank Deposit on September 30