PE 8-2B Items on company’s bank statement

The following items may appear on a bank statement: 1. NSF check 2. Bank correction of an error from posting another customer’s check to the company’s account 3. Loan proceeds 4. EFT deposit Using the format shown below, indicate whether each item would appear as a debit or credit memo on the bank statement and whether the item would increase or decrease the balance of the company’s account.


Item No.
Appears on the Bank Statement as a Debit or Credit Memo
Increases or Decreases the Balance of the Company’s Bank Account

Answer:

                          Appears on the Bank     Increases or Decreases
                          Statement as a Debit      the Balance of the
Item No.           or Credit Memo         Company’s Bank Account
1                              debit memo                 decreases
2                             credit memo                 increases  
3                             credit memo                 increases  
4                             credit memo                 increases

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