The following is a list of items that could cause the book balance for cash of Tamarisk Services to differ from Tamarisks bank statement balance from RBC (Royal Bank).

Identify if the item should be included as a reconciling item in Tamarisks bank reconciliation. Indicate if a journal entry will be needed to correct any of the account for Tamarisk.

Type Of Reconciliation Journal Entry

A deposit of collections on account from customers was made, but the amount did not match what appeared on the bank statement. The correct amount of $4,390, shown on the bank statement should have been used in Tamarisks books instead of the amount recorded of $4,489.	Does not affect bank reconciliation/Deduct from cash balance as per books/Add to cash balance per books/Deduct from cash balance per bank/Add to cash balance per bank	Yes/No
Included on the bank statement is an automatic charge for Tamarisk Services monthly mortgage payment. The amount of the payment was $930 of which $555 is principal. Tamarisks bookkeeper always waits for the transaction to appear on the bank statement before recording it because the amount varies from month to month.	Does not affect bank reconciliation/Deduct from cash balance as per books/Add to cash balance per books/Deduct from cash balance per bank/Add to cash balance per bank	Yes/No
When retracing cheque payments to the journals during the bank reconciliation process, it was noticed that a $1,570 cheque, payable to Tamarisk Services landlord for the current months rent, was charged to Advertising Expense.	Does not affect bank reconciliation/Deduct from cash balance as per books/Add to cash balance per books/Deduct from cash balance per bank/Add to cash balance per bank	Yes/No
On the previous months bank reconciliation, an outstanding cheque for $320 for a final pay cheque of a part-time employee had not yet been cashed. On the current month bank statement, the cheque has still not cleared the bank account.	Does not affect bank reconciliation/Deduct from cash balance as per books/Add to cash balance per books/Deduct from cash balance per bank/Add to cash balance per bank	Yes/No
Tamarisk has an agreement with RBC to collect notes receivable and any outstanding interest on the notes. Tamarisks bookkeeper waits to record any collection until the amounts are reported by RBC, because it is not predictable how much of the collection will be interest. On the current bank statement, an entry appears for a deposit of $1,145 for a collection of a note with a principal amount of $955.	Does not affect bank reconciliation/Deduct from cash balance as per books/Add to cash balance per books/Deduct from cash balance per bank/Add to cash balance per bank	Yes/No
Appearing on the bank reconciliation is a charge for an NSF cheque of $570 which had been deposited earlier in the month by Tamarisk as a payment on account by a new customer. RBC had added an additional charge of $21 for processing the NSF cheque. Because the customer was new, Tamarisk warned the customer that any NSF charges would be added to the amount owing from the customer.	Does not affect bank reconciliation/Deduct from cash balance as per books/Add to cash balance per books/Deduct from cash balance per bank/Add to cash balance per bank	Yes/No
A cheque correctly issued in the amount of $490 as a payment on account to a supplier was incorrectly recorded in the books as $590.	Does not affect bank reconciliation/Deduct from cash balance as per books/Add to cash balance per books/Deduct from cash balance per bank/Add to cash balance per bank	Yes/No
Two cheques totalling $325, which were outstanding at the end of the last month, cleared in the current months bank statement. Included in the bank statement are charges of $34 for the use of debit cards by Tamarisks customers. Tamarisk waits for the information to be processed by the bank before recording them in the books.	Does not affect bank reconciliation/Deduct from cash balance as per books/Add to cash balance per books/Deduct from cash balance per bank/Add to cash balance per bank	Yes/No

No.	Account Titles and Explanation	Debit	Credit
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