Question

Sienna wants to reconcile her bank account to check how much money she has to spend.

What does she need to do to adjust the balance in her bank statement?

While adjusting her bank statement balance, Sienna should first add 1.) ________
and then deduct 2.) _________.

1.)
- deposits in transit
- NSF fees
- bank service charges

2.)
- bank errors
- outstanding checks issued
- interest earned

Answer 1

1. NSF fees and service charges would be money taking out of her account. She wants to add what is being put into her account so she should add deposits in transit.

The answer is Deposits in transit.

2. Deductions is money being taken out, so she would deduct outstanding checks issued.

Answer: outstanding checks issued.