A bank reconciliation proves the accuracy of the depositor’s and the bank’s records. The bank statement balance is adjusted for items such as outstanding checks and unrecorded deposits made on or before the bank statement date but not reflected on the statement. The book balance is adjusted for items such as service charges, bank collections for the depositor, and interest earned on the account.

Select the items below must be adjusted to the book balance:

a. deposits in transit
b. book error
c. bank error
d. outstanding checks
e. interest earned on checking account
f. collections of accounts receivable by the bank