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.

 

 

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