Question :
91.While preparing the bank reconciliation, an accountant discovered that a : 1237639
91.While preparing the bank reconciliation, an accountant discovered that a $426 check returned with the bank statement had been recorded erroneously in the depositor’s accounting records as $462. In preparing the bank reconciliation the appropriate action to correct this error would be to:
A.Add $36 to the balance per the depositor’s records.
B.Add $36 to the balance per the bank statement.
C.Deduct $36 from the balance per the bank statement.
D.Deduct $36 from the balance per the depositor’s records.
92.The accounting records of Golden Company showed cash of $15,250 at June 30. The balance per the bank statement at June 30 was $15,125. The only reconciling items were deposits in transit of $3,200, outstanding checks totaling $4,100, an NSF check for $1,000 returned by the bank which Golden had not yet charged back to the customer, and a bank service charge of $25. The preparation of the bank reconciliation should indicate that Golden’s adjusted cash balance at June 30 is:
A.$14,475.
B.$15,375.
C.$14,225.
D.$15,525.
$15,250 – $25 – $1,000 = $14,225
93.A bank statement shows a balance of $8,445 at June 30. The bank reconciliation is prepared and includes outstanding checks of $2,790, deposits in transit of $1,350, and a bank service charge of $30. Among the paid checks returned by the bank was check no. 900 in the amount of $600, which the company had erroneously recorded in the accounting records as $60. The “adjusted cash balance” at June 30 is:
A.$6,975.
B.$6,465.
C.$7,005.
D.$7,575.
$8,445 – $2,790 + $1,350 = $7,005
The Cash account in the ledger of Hensley, Inc. showed a balance of $3,100 at June 30. The bank statement, however, showed a balance of $3,900 at the same date. The only reconciling items consisted of a $700 deposit in transit, a bank service charge of $7, and a large number of outstanding checks.
94.Refer to the information above. What is the “adjusted cash balance” at June 30?
A.$3,900.
B.$3,093.
C.$7,600.
D.$2,400.
$3,100 – $7 = $3,093
95.Refer to the information above. What is the total amount of the outstanding checks at June 30?
A.$1,513.
B.$1,486.
C.$1,507.
D.$1,500.
$3,900 + $700 – $3,093 = $1,507
96.Refer to the information above. Upon completion of the bank reconciliation, a journal entry will be required to update the depositor’s accounting records. This entry will include a:
A.Credit to Cash for $700.
B.Debit to Cash for $700.
C.Debit to Cash for $7.
D.Debit to Bank Service Charge Expense for $7.
The Cash account in the ledger of Clear Windows shows a balance of $12,596 at September 30. The bank statement, however, shows a balance of $16,253 at the same date. The only reconciling items consist of a bank service charge of $16, a large number of outstanding checks totaling $6,740, and a deposit in transit.
97.Refer to the information above. What is the adjusted cash balance in the September 30 bank reconciliation?
A.$16,237.
B.$12,580.
C.$9,513.
D.$5,856.
$12,596 – $16 = $12,580
98.Refer to the information above. What is the amount of the deposits in transit?
A.$5,856.
B.$9,513.
C.$3,067.
D.$3,083.
$16,253 – $6,740 + X = $12,580; X = $3,067
99.Cardinal Company’s bank statement showed a balance at May 31 of $180,974. The only reconciling items consisted of a large number of outstanding checks totaling $51,847. At May 31, what balance should Cardinal’s Cash account show?
A.$232,821.
B.$129,127.
C.$77,280.
D.$180,794.
$180,974 – $51,847 = $129,127
100.All the following are steps included in the preparation of the bank reconciliation except:
A.Comparing deposits listed on the bank statement with the deposits shown in the accounting records.
B.Comparing checks listed on the bank statement with corresponding entries in the accounting records.
C.Deducting any debit memoranda from the balance on the bank statement.
D.Preparing journal entries for any adjustments to the depositor’s records.
