Question: 1. Luke Roye is uncertain about the control features of a bank account. Explain the control benefi ts of (a) a checking account and (b) a bank statement.
2. The following reconciling items are applicable to the bank reconciliation for Forde Co. Indicate how each item should be shown on a bank reconciliation.
(a) Outstanding checks.
(b) Bank debit memorandum for service charge.
(c) Bank credit memorandum for collecting an electronic funds transfer.
(d) Deposit in transit.