Reference no: EM132789987

Problem 1: A credit memorandum appeared on Central Company's bank statement. How will Central treat this amount on its bank reconciliation?

a.Deduct it from the book balance

b.Deduct it from the bank balance

c.Add it to the book balance

d.Add it to the bank balance

The treasurer for Rahm Corp. was preparing a bank reconciliation as of September 30, 2017. The following items were identified:

Rahm's book balance $32,800

Deposits in transit $4,300

Outstanding checks $2,200

Interest earned on checking account $100

Customer's NSF check returned by the bank $400

Problem 2: Rahm Corp.'s adjusted cash balance at September 30, 2017 is

a.$34,900.

b.$34,600.

c.$32,500.

d.$32,800.