The items listed below were identified while preparing a bank reconciliation for the company's checking account as of March 31.Cash balance according to the general ledger

-Refer to Dance Town Academy. How will the bank services charges be handled on a bank reconciliation?
A)add to the balance from the company records
B)subtract from the balance from the company records
C)add to the bank statement balance
D)subtract from the bank statement balance

Question

The items listed below were identified while preparing a bank reconciliation for the company's checking account as of March 31.Cash balance according to the general ledger

-Refer to Dance Town Academy. How will the bank services charges be handled on a bank reconciliation?
A)add to the balance from the company records 
B)subtract from the balance from the company records 
C)add to the bank statement balance 
D)subtract from the bank statement balance

Quizplus · Accepted Answer

Bank service charges are expenses recognized by the company when notified via a bank statement. They decrease the company's book balance of cash, thus they should be subtracted from the balance per the company's records during reconciliation.

The Items Listed Below Were Identified While Preparing a Bank