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Smash Company has asked for your assistance in reconciling the company's 12/31st cash balance and while doing so you discover the following items: Per the

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Smash Company has asked for your assistance in reconciling the company's 12/31st cash balance and while doing so you discover the following items: Per the December bank statement: (i) $12 of interest income earned in December. (ii) $35 in total for December bank service fees. $15 is the monthly service fee and $20 extra was assessed due to a $2,300 deposit (made by Smash earlier in December) and reported on the December bank statement as NSF. ($20 + $15 = $35). (iii) Check #2315 represented payment by Smash to a local repair company (Bash Repair Services "BRS") for a December service call on the company's copy machine. The amount owed to Bash for the service call was $445 but the clerk, while writing the check, was distracted by chatting with the repair tech and erroneously wrote check #2315 for $454. Unaware of this error the clerk recorded the payment within the accounting records as follows: Repair Expense (dr) $445.00 Cash (cr) $445.00 (iv) Smash noted that $3,000 of checks written in December were not reported on the December bank statement, and check #2280 written for $200, and shown as outstanding in November, was also not included. (v) The last deposit of the month for $1,800, was made after 4 pm on December 31, and was not included on the December bank statement. Assume Smash reported a December 31st unadjusted cash balance of $22,430. Consider the $35 of service fees reported on the bank statement (item (ii) above), and select the true statement below. Item (ii) would result in the bank's issuance of both debit and credit memorandums. Item (ii) would result in the bank issuing one or more credit memorandums but no debit memorandums. Item (ii) would result in the bank issuing one or more debit memorandums but no credit memorandums. The situation described in item (ii) would require the bank to issue both debit and credit memorandum(s)

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