Directions. Read each sentence carefully and determine whether the statement is True or False.
1. Deposit in transit is a reconciling item added to the unadjusted book balance. 2. Outstanding check is a reconciling item deducted from the unadjusted bank balance.
3. Debit memo is an adjustment to the bank side of the bank reconciliation.
4. Bank service charge is a reconciling item deducted from the unadjusted book balance.
5. Adjusting journal entries are prepared based on the reconciling items on the bank side of the bank reconciliation.​​