Classify each of the following reconciling items of the Tic and Tac Company as:

-Bank withdrew from Tic and Tac's account $1,100 for a cheque written for $110 ________
A)an addition to the bank balance
B)a deduction from the bank balance
C)an addition to the book balance
D)a deduction from the book balance
E)not a reconciling item

Question

Classify each of the following reconciling items of the Tic and Tac Company as:

-Bank withdrew from Tic and Tac's account $1,100 for a cheque written for $110 ________
A)an addition to the bank balance
B)a deduction from the bank balance
C)an addition to the book balance
D)a deduction from the book balance
E)not a reconciling item

Quizplus · Accepted Answer

The bank withdrew $1,100 instead of $110, so the bank balance needs to be increased by $990 to correct the error.

Classify Each of the Following Reconciling Items of the Tic