Bank Reconciliation: True or False

Part 1. Determine if each of the statements below is true or false. Write your answer on the space provided. 1. Adjusting journal entries are prepared based on the reconciling items on the bank side of the bank reconciliation. 2. Bank service charge is a reconciling item deducted from the unadjusted book balance. 3. Debit memo is an adjustment to the bank side of the bank reconciliation. 4. Outstanding check is a reconciling item deducted from the unadjusted bank balance. 5. Deposit in transit is a reconciling item added to the unadjusted book balance. 6. Bank statement is a letter issued by the bank that certifies the existence of the bank account. 7. Time deposit normally has a fixed interest rate and a fixed placement period. 8. Time deposit accounts are investment accounts in nature. 9. The account older may use withdrawal slip to get money from his checking account. 10. The account holder may issue a bank check from a savings account