Question

1.) Write your answer in the space provided or on a separate sheet of paper.
Classify each of the following reconciling items of the Tic and Tac Company as:
a) an addition to the bank balance
b) a deduction from the bank balance
c) an addition to the book balance
d) a deduction from the book balance
e) not a reconciling item
_________1. Bank service charges
_________2. Bookkeeper recorded cheque #849 as $693 instead of the correct amount of $963
_________3. Collection of note receivable plus interest revenue by bank
_________4. Deposits in transit
_________5. Bank added deposit to Tic and Tac’s account in error
_________6. Bank charge for printing cheques
_________7. Outstanding cheques
_________8. Bookkeeper failed to record a cheque that was returned with the bank statement
_________9. Cheque returned by the bank marked NSF
_________10. Bank withdrew from Tic and Tac’s account $1,100 for a cheque written for $110
2.) The following information is available for Blue Moon Company regarding its June 30.2011, bank statement:
-Balance per bank statement is $10,300.34.
-Balance per books is $9,652.78.+ Cheque #506 for $1,948.52 and cheque #510 for $1,600.25 were not returned with the June 30 bank statement.
-A deposit in transit of $4,562.21 had not been received by the bank when the bank statement was generated.
-A bank debit memo indicated an NSF cheque written by Bruce Garett to Blue Moon Company on June 13 for $279
-A bank credit memo indicated a bank collection of $1,900 and interest revenue of $75 on June 20.
-The bank statement indicated service charges of $35.
Prepare a bank reconciliation for Blue Moon Company dated June 30, 2011
3.) Prepare any necessary journal entries based on the following data regarding the bank reconciliation prepared by Bootlegger Company on February 28, 2011.
a) Outstanding cheques amount to $650.
b) The service charges for February amount to $40.
c) Cheque #665 for $3,525 for the cash purchase of office equipment was erroneously recorded by the bookkeeper as $3,552
d) The bank erroneously credited Bootlegger Company’s account for $300 for a deposit made by Bootlegger Company.
e) A deposit ticket correctly prepared for $975 appeared on the bank statement as a deposit for $795
f) Cheque #650 for $100 for utilities expense was erroneously recorded by the bookkeeper as $10.
g) A customer’s cheque for $250 was returned with the bank statement and stamped NSF.

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