Bank reconciliation adjustments (Learning Objective 1) 10–15 min.

Classify each of the following items as one of the following:

Addition to the book balance (+ Book)

Subtraction from the book balance (− Book)

Addition to the bank balance (+ Bank)

Subtraction from the bank balance (– Bank)

____ 1. Outstanding checks ____ 2. Deposits in transit ____ 3. NSF check ____ 4. Bank collection of our note receivable ____ 5. Interest earned on bank balance ____ 6. Bank service charge ____ 7. Book error: We credited Cash for $200. The correct amount of the check was

$2,000.

____ 8. Bank error: The bank decreased our account for a check written by another customer.

AppendixLO1