You are preparing the bank reconciliation for your company, Hanneson Holdings Ltd., as at October 31.
Required:
Indicate whether each of the following items would be added to the bank balance, deducted from the bank balance, added to the cash account balance in the general ledger (G/L), or deducted from the cash account balance in the general ledger (G/L). If any of the items do not have to be included in the bank reconciliation, explain why.
a. Service charges of $35 were charged by the credit union during the month.
b. Cheques that Hanneson Holdings had written and mailed out that had not yet cleared the credit union amounted to $1,600.
c. One of your customers made an electronic payment to your account at the credit union in the amount of $1,050.
d. The cash receipts for October 31 amounted to $2,750 and had been deposited in the night drop slot at the credit union on the evening of October 31. These were not reflected on the bank statement for October.
e. A cheque from one of your customers in the amount of $270 that had been deposited during the last week of October was returned with the bank statement as NSF.
f. One deposit, for a receipt from a customer paying off its account, was incorrectly recorded by your bookkeeper. The correct amount of the receipt was $230, but the bookkeeper had recorded it as $320.