QUESTION 1

1. Coasters Co. wrote a check for $623, but incorrectly recorded the journal entry for $632. How would this be adjusted in the bank reconciliation?

   		Subtract from bank statement (bank side)
   		Subtract from company records (book side)
   		Add to company records (book side)
   		Add to bank statement (bank side)

QUESTION 2

1. Coasters Co. earns 2% interest on their checking account. On the last bank statement, the bank only credited Coasters with 1% interest. Coasters called the bank about the error and the bank added another 1% interest to Coasters account. How would this be adjusted in the bank reconciliation?

   		Subtract from company records (book side)
   		Subtract from bank statement (bank side)
   		Add to company records (book side)
   		Add to bank statement (bank side)

QUESTION 3

1. Coasters Co. issued a note receivable to a customer. The customer made payment, principal and interest, directly to the Coasters bank. What would be included in the journal entry to adjust for this payment?

   		Credit to cash
   		Debit to notes receivable
   		Credit to interest income
   		Debit to interest expense
   		No journal entry needed

QUESTION 4

1. Coasters Co. received notification from their bank that one of their customers checks bounced (NSF). What would be included in the journal entry to adjust for this payment?

   		Debit to accounts receivable
   		Debit to cash
   		Credit to accounts receivable
   		Debt to bad debt expense

QUESTION 5

1. Coasters Co. issued a note receivable to a customer. The customer made payment directly to the Coasters bank. The payment appeared on the month-end bank statement. How would this payment be adjusted in the bank reconciliation?

   		Add to bank statement (bank side)
   		Subtract from bank statement (bank side)
   		Subtract from company records (book side)
   		Add to company records (book side)