Accounting Notes Ch.6

Accounting Notes Ch.6 - Accounting Notes Chapter 6...

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Accounting Notes Chapter 6 Interpret monthly bank statement and prepare a bank reconciliation - The bank statement shows the activities for one month: The beginning balance The deposits received The checks paid Other debits and credits to the account The ending balance Service charges are added as a cost of handling the account A debit memo describes a bank deduction from the depositor’s account A non-sufficient funds check (NSF) is a customer’s check previously deposited but uncollectible A credit memo describes a bank’s credit When a depositor requests a certified check, the bank immediately deducts the amount of the check from the depositor’s balance - Preparing a b ank reconciliation: Comp are d e posits shown on the b ank st at e m e nt with de bits in the Cash account Deposits in transit ar e d eposit m a d e too late in the m onth to b e credited by the b ank the current st at e m e nt Comp are the checks p aid a nd returned by the ba nk (canc elled checks) with the credi
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Accounting Notes Ch.6 - Accounting Notes Chapter 6...

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