Identify each of the following reconciling items as: An addition to the cash balance according to the bank statement. A deduction from the cash balance according to the bank statement. An addition to the cash balance according to the company's records. A deduction from the cash balance according to the company's records. Assume that none of the transactions reported by bank debit and credit memos have been recorded by the company. Write "entry" by items that will require a journal entry in the company's accounts. 1. Deposits in transit. 2. Bank service charges. 3. NSF check. 4. Outstanding checks. 5. Check for $690 incorrectly recorded by the company as $960. 6. Check for $420 incorrectly recorded by the company as $240.

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tutorAnne tutorAnne · Answer 1 · 2020-05-05T04:27:23+02:00

Answer: please see below for answer

Explanation: 1. Deposits in transit-----additions to cash balance according to bank statements

2. Bank service charges. ---- A deduction from the cash balance according to the company's records.

3. NSF check.----- A deduction from the cash balance according to the company's record

4. Outstanding checks.----- A deduction from the cash balance according to the company's record

5. Check for $690 incorrectly recorded by the company as $960-----An addition to the cash balance according to the company's records.

6. Check for $420 incorrectly recorded by the company as $240-----An addition to the c ash balance according to company record

Journal Entry

NSF check ---- Accounts Receivable- debit; Cash--Credit

Bank Service charge ---- Bank Expense -Debit, Cash Credit

Check which is incorrectly recorded by the company----Accounts payable--debit; Cash ---Credit.

Deposits in transits and Outstanding checks---No entry.