My Courses Assume you are doing a Bank Reconciliation. The bank balance at end of a month is $0 and the Book balance for same date is $150. Based on the the following two partial transactions, find what is the RECONCILING DIFFERENCE (a) Bank made an error of $200 by clearing a cheque in the amount of $600 instead of the correct amount of $400. (b) Book also made an error of recording an entry incorrectly, i.e. it recorded a deposit of $50 incorrectly as $125. Type in your answer in the answer box and your answer must be numerical, without any dollar sign, commas or decimal places. Comp Mark TA Answer: 275 Prepare adjusting entry for a company after 4 months that paid $2,400 of insurance in advance at beginning of the year: A. Debit Insurance Expense $ 2,400; Credit Prepaid Insurance $2,400 B. Debit Prepaid Insurance $800; Credit Insurance Expense $800 C. Debit Insurance Expense $800: Credit Prepaid Insurance 1.Refresher....ppt ACCT 1.Ch01 12ed....ppt ^ ACCT 1.Ch2 revise....ppt 7 ACCT 1.ch3 (42) (4).ppt What is the reason for subtracting an outstanding cheque on the Bank side when doing the Bank reconciliation? A. Because the Bank was aware of the outstanding cheque and it must be adjusted on that side B. Because the Bank was not aware of any outstanding items and must add to the balance C. Because, had the Bank been aware of the outstanding cheque, the balance would have been lower D. Because, had the Bank been aware of the outstanding cheque, the balance would have been higher Assume you are doing a Bank Reconciliation for your newly acquired Health Care Business. You found a Bank error and had to add $100 on Bank side; and then, you also found a Book error and had to deduct $100 on Book side. Will the Bank Reconciliation balance? (a) If YES, type 1 in the answer box below (b) if NO, type 2 in the answer box below (c) if NOT NECESSARILY, Type 3 in the answer box below. Answer: 2