E5-16

Identify each of the following reconciling items as: (a) an addition to the cash balance according to the bank statement, (b) a deduction from the cash balance according to the bank statement, (c) an addition to the cash balance according to the companys records, or (d) a deduction from the cash balance according to the companys records. (None of the transactions reported by bank debit and credit memos have been recorded by the company.)

1.Bank service charges, $36.

2.Check drawn by company for $375 but incorrectly recorded by company as $735.

3.Check for $50 incorrectly charged by bank as $500.

4.Check of a customer returned by bank to company because of insufficient funds, $1,200.

5.Deposit in transit, $12,375.

6.Outstanding checks, $14,770.

7.Note collected by bank, $10,600.