Items on a Bank Reconciliation Assume that a company is preparing a bank reconciliation for the month of June. It reconciles the bank balance and the book balance to the correct balance. For each of the following items, indicate whether the item is an addition to the bank balance (A-Bank), an addition to the book balance (A-Book), a deduction from the bank balance (D-Bank), a deduction from the book balance (D-Book), or would not appear on the June reconciliation

(NA). Also, place an ADJ next to your answer for any items that will require an adjustment on the company’s books.

______ 1. Check written in June but not yet returned to the bank for payment ______ 2. Customer’s NSF check ______ 3. Customer’s check written in the amount of $54 but recorded on the books in the amount of $45*

______ 4. Service charge for new checks ______ 5. Principal and interest on a customer’s note collected for the company by the bank ______ 6. Customer’s check deposited on June 30 but not refl ected on the bank statement ______ 7. Check written on the company’s account, paid by the bank, and returned with the bank statement ______ 8. Check written on the company’s account for $123 but recorded on the books as $132*

______ 9. Interest on the checking account for the month of June

*Answer in terms of the adjustment needed to correct for the error.

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