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Indicate the effect of each item listed below on the bank reconciliation Cheque returned NSF (non- sufficient funds). The bank made an error. Cheque #568

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Indicate the effect of each item listed below on the bank reconciliation Cheque returned NSF (non- sufficient funds). The bank made an error. Cheque #568 for $4,800 was inadvertently processed as $8,400. The bank has been notified and will correct the error next morth 1. Increase in the general ledger cash account - journal entry required 2. Decrease in the general ledger cash account - journal entry required The company's accountant made an error. Cheque #570 was recorded as $980 when the proper amount was $890. 3. Increase in balance per bank statement - no journal entry required Bank service charge 4. Decrease in balance per bank statement - no journal entry required Deposits in transit 5. No effect on the reconciliation - no journal entry required 4 Outstanding cheques. 1 Collection of interest earned on the bank balance

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