Question

Determine which of the iterns below would appear in the Deposits column of a baok statement and would cause in increase in the accounts balance. (Check all that apply.)

O A returned uncollectible customer check
O Interest paid by the bank on the bank account balance
O A note collected by the bank on behalf of the account ownef
O Checks written by the account owner
O Deposits made cluring the month

Answer 1

A note collected by the bank and deposits made during the month would appear in the Deposits column, causing an increase in the account balance. The correct answer is option c. and e.

Step-by-step explanation:

The items that would appear in the Deposits column of a bank statement and cause an increase in the account's balance are:

• A note collected by the bank on behalf of the account owner: When the bank collects a promissory note on behalf of the account owner, it increases the account balance.
• Deposits made during the month: Any money deposited into the account during the month will increase the account balance.

Note that returned uncollectible customer checks, interest paid by the bank, and checks written by the account owner do not appear in the Deposits column and do not cause an increase in the account balance.