Question

choose the items below that would increase the book balance on a bank reconciliation. (check all that apply.) multiple select question. note collected by the bank for the depositor interest earned on the depositor's account deposit in transit nsf customer check monthly check charges assessed by the bank monthly bank service charge

Answer 1

The book balance on a bank reconciliation is increased by notes collected by the bank for the depositor, interest earned on the depositor's account, and deposits in transit.

Step-by-step explanation:

To increase the book balance on a bank reconciliation, certain items need to be added to the balance per the bank statement to arrive at the adjusted book balance. The items that will increase the book balance are:

• Note collected by the bank for the depositor: This represents funds the bank has collected on behalf of the depositor, adding to their available balance.
• Interest earned on the depositor's account: Interest payments from the bank increase the depositor's account balance.
• Deposit in transit: Deposits that have been made but are not yet recorded by the bank, which once recorded, will increase the balance.

The following items would not increase the book balance but are noted for context:

• NSF (Non-Sufficient Funds) customer check: This would decrease the balance as it is a check that has been returned for insufficient funds in the payer's account.
• Monthly check charges assessed by the bank: These are fees that reduce the depositor's account balance.
• Monthly bank service charge: Similar to check charges, service fees also decrease the balance.

Answer 2

To increase the book balance in bank reconciliation, items such as notes collected by the bank, interest earned, and deposits in transit should be considered, as they directly add to the depositor's balance.

Step-by-step explanation:

The items that would increase the book balance on a bank reconciliation include:

• Note collected by the bank for the depositor
• Interest earned on the depositor's account
• Deposit in transit

Now, let's explain further:

• A note collected by the bank adds to the depositor's balance because it is a sum that the bank has received on behalf of the depositor.
• Interest earned on the account is another direct addition to the depositor's balance as it represents income from the deposited funds.
• A deposit in transit is a deposit that has been made but not yet recorded by the bank. Once the bank recognizes it, the book balance will increase accordingly.

Items like NSF customer checks, monthly check charges, and monthly bank service charges would not increase the book balance; instead, they would decrease it.