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December 30th - January 2nd Class Activity (Chapter 7) Bank Reconcili Name: Student ID: 1. What are the reconciling items in a bank reconciliation (b) 2. Reconciling Procedure: Cash Balance per Bank Cash Balance per Books Corrected Balance Corrected Balance 3. If a check correctly written and paid by the bank for $519 is incorrectly recorded on the company's books for $591, the appropriate treatment on the bank reconciliation would be to a. add $72 to the bank's balance. c. deduct $72 from the bank's balance. b. add $72 to the book's balance. d. deduct $519 from the book's balance. 4. Notification by the bank that a deposited customer check was returned NSF requires that the company make the following adjusting entry: a. Accounts Receivable c. Miscellaneous Expense Cash Accounts Receivable b. Cash d. No adjusting entry is necessary Accounts Receivable 5. Heath Company gathered the following reconciling information in preparing its July bank reconciliation: Cash balance per books, 7/31 15,000 Deposits in transit 300 Notes receivable and interest collected by bank 1,700 Bank charge for check printing 40 Outstanding checks 4,000 NSF check 340 The adjusted cash balance per books on July 31 is a. 16,320. b. 16,020. c. 12,620 d. 12,920