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Question 1 (20 marks) The following items appeared on Sew Safe's bank reconciliation statement: 1. Bank error: The recording of a deposit for $ 377
Question 1 (20 marks) The following items appeared on Sew Safe's bank reconciliation statement: 1. Bank error: The recording of a deposit for $ 377 should have been $ 773 2. Bank debit memo for service charge 3. Outstanding cheques 4. Outstanding cheques from the previous month that are still outstanding 5. Bank collection of a note receivable on Sew Safe's behalf 6. Deposits in transit for the current month 7. Bank credit memo for interest earned on Sew Safe's bank balance 8. NSF cheques 9. Book error: Sew Safe credited cash for $5,000. The correct credit was $ 500. 10. Bank error: The bank decreased Sew Safe's bank account for a cheque written by another bank customer. Required: A. Use the following numerals to classify each item: a. An addition to the book balance b. A subtraction from the book balance c. An addition to the bank balance d. A subtraction from the bank balance B. Indicate the items that will result in an adjustment to the company's records; indicate why the other items do not require an adjustment
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