Question :
51. Which of the following a reconciling item when reconciling the : 1224902
51. Which of the following is a reconciling item when reconciling the bank balance to the correct balance? A. Canceled checksB. Outstanding checksC. NSF checksD. Error in company record
52. In the reconciliation of a bank statement, deposits in transit should be: A. added to the unadjusted balance per the company’s records.B. subtracted from the unadjusted balance per the company’s records.C. added to the unadjusted bank statement balance.D. subtracted from the unadjusted bank statement balance.
53. The treasurer for Kent Enterprises was preparing a bank reconciliation as of October 31, 2012, when the following items were identified:
Balance per Kent’s company records
$32,800
Deposits in transit
4,300
Outstanding checks
2,200
Interest earned on the checking account
100
NSF check from Kent’s customer
400
Kent’s adjusted cash balance at October 31, 2012, is: A. $34,600.B. $34,900.C. $32,500.D. $32,800.
54. Ciao, Inc. had $962 in its cash account per the company’s records as of June 30th. This included a deposit of $87 that was in transit on June 30th. The June 30th bank statement contained the following information:
Bank statement balance
$1,089
Bank service charge
7
Collection of notes receivable
68
NSF check
16
Ciao also had outstanding checks of $169. What is Ciao’s adjusted cash balance at June 30th? A. $920B. $940C. $1,007D. $1,089
55. Madrid Consulting, Inc.Madrid Consulting, Inc. prepared a bank reconciliation as of March 31, 2011. The following items were identified.
Madrid’s bank statement balance
$31,400
Unadjusted cash balance from Madrid’s records
?
Deposit in transit
1,800
Outstanding checks
4,500
Bank service charges
100
Interest earned on the bank account
85
Customer’s NSF check returned by the bank
450
Refer to the information provided for Madrid Consulting, Inc. What is Madrid’s adjusted cash balance at March 31st? A. $28,700B. $29,165C. $28,300D. $29,600
56. Madrid Consulting, Inc.Madrid Consulting, Inc. prepared a bank reconciliation as of March 31, 2011. The following items were identified.
Madrid’s bank statement balance
$31,400
Unadjusted cash balance from Madrid’s records
?
Deposit in transit
1,800
Outstanding checks
4,500
Bank service charges
100
Interest earned on the bank account
85
Customer’s NSF check returned by the bank
450
Refer to the information provided for Madrid Consulting, Inc. What is Madrid’s unadjusted cash balance in its accounting records at March 31st before the reconciliation was completed? A. $28,700B. $29,165C. $28,300D. $29,600
57. Madrid Consulting, Inc.Madrid Consulting, Inc. prepared a bank reconciliation as of March 31, 2011. The following items were identified.
Madrid’s bank statement balance
$31,400
Unadjusted cash balance from Madrid’s records
?
Deposit in transit
1,800
Outstanding checks
4,500
Bank service charges
100
Interest earned on the bank account
85
Customer’s NSF check returned by the bank
450
Refer to the information provided for Madrid Consulting, Inc. What is net amount of the adjustments to Madrid’s cash balance as a result of the bank reconciliation? A. $465 increaseB. $465 decreaseC. $2,700 decreaseD. $2,700 increase
58. Which of the following journal entries is recorded as a result of the bank reconciliation process to record a NSF check for $250? A. Cash 250 Accounts Receivable 250B. Cash 250 Accounts Payable 250C. Account Receivable 250 Cash 250D. Accounts Receivable 250 Petty Cash 250
59. During the bank reconciliation process, an accountant identified an error. This error involved a company check written for $200 to pay a supplier for goods purchased on credit by the company. The check was erroneously recorded in the company’s records for $2,000. Which of the following entries would correct this error in the company’s records? A. Cash 1,800 Accounts Payable 1,800B. Cash 1,800 Accounts Receivable 1,800C. Account Receivable 1,800 Accounts Payable 1,800D. None of these, as the error should be corrected by the supplier’s personnel.
60. The account which records the difference between the cash needed for replenishment and amount of receipts is called: A. Petty Cash.B. Cash Over and Short.C. Cash Equivalents.D. Discrepancy Expense.
