Prior to class: Read the remainder of Chapter 7. 1. What is the purpose of a bank reconciliation? 2. Define the following as related to a bank reconciliation: A Electronic fund transfers (EFTS) B. Not sufficient funds check (NSF check): C. Deposits in transit: D. Outstanding checks: E. Credit memo Decrease Does a credit memo increase or decrease a company's bank account balance? Increase E. Debit memo Decrease Does a debit memo increase or decrease a company's bank account balance? Increase 3. Carefully review the Bank Reconciliation Mustrated section, including the journal entries, in Chapter 7 4. The journal entries relate to which part of the bank reconciliation? Circle the correct answer. Cash Balance Per Books Cash Balance Per Bank 5. Note: After the journal entries are posted, the balance in the Cash general ledger account should equal the adjusted cash balance as shown on the bank reconciliation