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Using the code letters below, indicate how each of the items listed would be handled in preparing a bank reconciliation. Enter the appropriate code letter in the space to the right of each item. Code A Add to cash balance per books B Deduct from cash balance per books C Add to cash balance per bank D Deduct from cash balance per bank E Does not affect the bank reconciliation Items 1. Outstanding checks select an code 2. Bank service charge select an code 3. Check for $320 correctly written and paid by the bank but incorrectly entered in the cash payments record for $230 select an code 4. Deposit in transit select an code 5. Bank returns customer deposited check marked NSF select an code 6. Bank collects notes receivable and interest for depositor select an code 7. Bank debit memorandum for check printing fees select an code 8. Petty cash custodian has $86 in paid petty cash vouchers that have not been reimbursed. select an code 9. Bank charged a check against the company, which should have been charged to another company. select an code 10. A check for $236 was correctly paid by the bank but was incorrectly entered in the cash payments records for $263
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