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Bank reconciliation

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4. In preparing a bank reconciliation, interest paid by the bank on the account is
a. added to the bank balance.
b. subtracted from the bank balance.
c. added to the book balance.
d. subtracted from the book balance.

5. In preparing a monthly bank reconciliation, which of the following items would be added to the balance reported on the bank statement to arrive at the correct cash balance?
a. Outstanding checks
b. Bank service charge
c. Deposits in transit
d. A customer's note collected by the bank on behalf of the depositor

6. An analysis and aging of the accounts receivable of Shriner Company at December 31 revealed the following data:

Accounts Receivable ................................. $450,000
Allowance for Doubtful Accounts (before adjustment).. 25,000 (cr)
Accounts estimated to be uncollectible .............. 32,000

The net realizable value of the accounts receivable at December 31 should be
a. $450,000.
b. $443,000.
c. $425,000.
d. $418,000.

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4. c. added to the book balance.
Interest is already in the bank balance and it is not recorded in the ...

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