Dance Town Academy
The items listed below were identified while preparing a bank reconciliation for the company's chequing account as of March 31.
$\begin{array}{lr}
\text { Cash balance according to the general ledger } &?\
\text { Bank statement balance } & \$ 18,500 \
\text { Outstanding cheques } & 2,700\
\text { Customer's bounced cheque } & 350 \
\text { Bank service charges } & 100 \
\text { Deposits in transit } & 1,000 \
\text { Interest earned on the chequing account } & 60
\end{array}$
-Refer to the figure Dance Town Academy.How will the bank services charges be handled on a bank reconciliation?

Question

Dance Town Academy
The items listed below were identified while preparing a bank reconciliation for the company's chequing account as of March 31.
 $\begin{array}{lr}
\text { Cash balance according to the general ledger } &?\
\text { Bank statement balance } & \$ 18,500 \
\text { Outstanding cheques } & 2,700\ 
\text { Customer's bounced cheque } & 350 \
\text { Bank service charges } & 100 \
\text { Deposits in transit } & 1,000 \
\text { Interest earned on the chequing account } & 60
\end{array}$
-Refer to the figure Dance Town Academy.How will the bank services charges be handled on a bank reconciliation?

Quizplus · Accepted Answer

Bank service charges are expenses that the company wasn't aware of until receiving the bank statement. Therefore, they need to be subtracted from the company's book balance to reconcile the company's cash records with the bank's records.

Dance Town Academy the Items Listed Below Were Identified While

Dance Town Academy
the Items Listed Below Were Identified While