T or F 1-15

The bank often informs the company of bank service charges by including a credit memo with the monthly bank statement. 1- 2- In preparing a bank reconciliation, the amount of deposits in transit is added to the balance per bank statement. A check for $342 was erroneously charged by the bank as $432. In order for the bank reconciliation to balance, you must add $90 to the bank statement balance. 3- 4 Receipts from cash sales of $7,500 were recorded incorrectly in the cash receipts journal as $5,700. The entry required in the company's accounts should be debit Cash; credit Sales. A voucher is a written authorization to make a cash payment. A remittance advice is the notification accompanying the check issued to a creditor that states the 5- 6- specific invoice being paid. 7- The cut-up date of the bank statement should be matched with the last transaction of the same date in the business check book for bank reconciliation. 8- For efficiency of operations and better control over cash, a company should maintain only one bank account. In preparing a bank reconciliation, the amount of outstanding checks is added to the balance per bank statement. 9- 10- If an adjustment for an NSF check is made in a company's bank reconciliation, then the company must have written a bad check during the month. 11- If the balance in Cash Short and Over at the end of a period is a credit, it indicates that cash shortages have exceeded cash overages for the period. 12- If the balance in Cash Short and Over at the end of a period is a credit, it should be reported as an "other income" item on the income statement. 13- A voucher system is an example of an internal control procedure over cash payments. 14- Bank customers are considered creditors of the bank so the bank shows their accounts with credit balances on the bank's records. 15- The amount of the "adjusted balance" appearing on the bank reconciliation as of a the amount that is shown on the balance sheet for that date