Question
Johnson Corporations accounting department has received the monthly bank statement of June 2020 from the bank and is preparing the monthly bank reconciliation. The comparison
Johnson Corporations accounting department has received the monthly bank statement of June 2020 from the bank and is preparing the monthly bank reconciliation. The comparison of the bank statement data with the general ledger balance, the cash receipts journal and the cash disbursements journal the following was noted: 1. Deposits in transit AED 5,500 2. Outstanding checks AED 7,422 3. Bank service charge AED 25 4. Interest credited to Johnsons account AED 31 5. NSF check returned AED 377 Required: 1. For each of the above indicate the following: a) If the item is added to the bank statement balance b) If the item is deducted from the bank statement balance c) If the item is added to the general ledger (book) balance d) If the item is deducted from the general ledger (book) balance 2. In order to train a new employee for the responsibility of the bank reconciliations, the accounting manager requested you to prepare a description of the following for the new employee: a) Deposits in transit b) Outstanding checks c) Bank service charge d) NSF check returned
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