In the reconciliation of the June bank statement, a deposit made on June 30 did not appear on the June bank statement. In preparing the bank reconciliation, this deposit in transit should be
A)subtracted from the unadjusted book balance.
B)added to the unadjusted bank balance.
C)subtracted from the unadjusted bank balance.
D)added to the unadjusted book balance.

Question

Quizplus · Accepted Answer

Deposits in transit are added to the unadjusted bank balance because the bank has not yet received those deposits, but the company has already recorded them in its books.

In the Reconciliation of the June Bank Statement, a Deposit