recall the preparation of a bank reconciliation by selecting the correct items below. add deposits in…

recall the preparation of a bank reconciliation by selecting the correct items below. add deposits in transit to the bank balance. add any unrecorded bank fees to the bank balance. compute the adjusted bank balance. add the deposits in transit to the book balance. compute the adjusted (depositors) book balance. subtract any outstanding checks from the bank balance.

recall the preparation of a bank reconciliation by selecting the correct items below. add deposits in transit to the bank balance. add any unrecorded bank fees to the bank balance. compute the adjusted bank balance. add the deposits in transit to the book balance. compute the adjusted (depositors) book balance. subtract any outstanding checks from the bank balance.

Answer

Brief Explanations:

  • Deposits in transit are added to the bank balance as the bank has not yet recorded them.
  • Unrecorded bank fees are subtracted from the book - balance, not added to the bank balance.
  • Computing the adjusted bank balance and adjusted depositor's book balance are key steps.
  • Deposits in transit are added to the bank balance, not the book balance.
  • Outstanding checks are subtracted from the bank balance as they have been issued but not yet cleared by the bank.

Answer:

  • Add deposits in transit to the bank balance.
  • Compute the adjusted bank balance.
  • Compute the adjusted (depositor's) book balance.
  • Subtract any outstanding checks from the bank balance.