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Coaster's Co. earns 2% interest on their checking account. On the last bank statement, the bank only credited Coaster's with 1% interest. Coaster's called the bank about the error and the bank added another 1% interest to Coaster's account. How would this be adjusted in the bank reconciliation?

1. Subtract from company records (book side)
2. Add to bank statement (bank side)
3. Add to company records (book side)
4. Subtract from bank statement (bank side)

Coasters Co. issued a note receivable to a customer. The customer made payment, principal and interest, directly to the Coaster's bank. What would be included in the journal entry to adjust for this payment?

1. Credit to cash
2. Debit to interest expense
3. No journal entry needed
4. Debit to notes receivable
5. Credit to interest income

Coasters Co. issued a note receivable to a customer. The customer made payment directly to the Coaster's bank. The payment appeared on the month-end bank statement. How would this payment be adjusted in the bank reconciliation?

1. Add to bank statement (bank side)
2. Add to company records (book side)
3. Subtract from company records (book side)
4. Subtract from bank statement (bank side)

Coasters Co. wrote a check for $623, but incorrectly recorded the journal entry for $632. How would this be adjusted in the bank reconciliation?

1. Add to bank statement (bank side)
2. Subtract from bank statement (bank side)
3. Subtract from company records (book side)
4. Add to company records (book side)

Coaster's Co. received notification from their bank that one of their customer's checks bounced (NSF). What would be included in the journal entry to adjust for this payment?

1. Debit to cash
2. Credit to accounts receivable
3. Debit to accounts receivable
4. Debt to bad debt expense

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