Select the items below which must be adjusted to the book balance: ________ a. deposits in transit b. book error c. bank error d. outstanding checks e. interest earned on checking account f. collections of accounts receivable by the bank
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Step 1:** Deposits in transit - Adjust the bank balance ** Show more…
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Text: Select from the option list provided the adjustment to be made to either the balance per bank statement or balance per books to arrive at the true cash balance at the end of the period. A choice may be used once, more than once, or not at all. Description/Characteristics Answer 1. Bank charges not recorded on company books 2. Cleared company check recorded on bank statement for an amount smaller than recorded on books due to a bank error 3. Deposits in transit 4. Bank errors that understate the bank statement balance 5. Company errors that overstate the cash balance per books
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