Question : 141. Ryan Company deposits all cash receipts the day they : 1257950

 

 

141. Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan’s June bank statement shows $18,361 on deposit in the bank. Ryan’s comparison of the bank statement to its cash account revealed the following:

Deposit in transit$1,450Outstanding checks$837

Additionally, a $29 check written and recorded by the company correctly was recorded by the bank as a $92 deduction.

The adjusted cash balance per the bank records should be:A. $18,974B. $18,911C. $20,711D. $19,037E. $16,137 

 

142. Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on May 31, its Cash account shows a debit balance of $17,025. Clayborn’sMay bank statement shows $15,800 on deposit in the bank.Determine the adjusted cash balance using the following information:

Deposit in transit………………………………$5,200Outstanding checks……………………………$4,600Bank service fees, not yet recorded by company$25A NSF check from a customer, not yet recorded   by the company$600

The adjusted cash balance should be:A. $16,400B. $11,200C. $21,000D. $16,425E. $17,000 

 

143. Franklin Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on August 31, its Cash account shows a debit balance of $13,162. Franklin’s August bank statement shows $14,237 on deposit in the bank. Determine the adjusted cash balance using the following information:

Deposit in transit………………………………$4,500Outstanding checks……………………………$3,900Bank service fees, not yet recorded by company$50The bank collected on a note receivable, not   yet recorded by the company$1,725

The adjusted cash balance should be:A. $18,737B. $10,337C. $14,887D. $13,112E. $14,837 

 

144. Clayborn Company’ bank reconciliation as of May 31 is shown below

Bank balance

$15,800

Book balance

$17,025

+ Deposit in transit

5,200

Bank service fees

–   25

– Outstanding checks

– 4,600

NSF returned

– 600

Adjusted book balance

$16,400

 

$16,400

The adjusting journal entries that Clayborn must record as a result of the bank reconciliation include:A.A debit to Cash of $625B.A debit to Cash of $5,200C.A credit to Cash of $4,600D.A credit to Cash of $600E.A debit to cash of $25 

 

145. Franklin Company’s bank reconciliation as of August 31 is shown below.

Bank balance

$14,237

Book balance

$13,162

+ Deposit in transit

4,500

Bank service fees

–   50

– Outstanding checks

– 3,900

Note collected

1,725

Adjusted book balance

$14,837

 

$14,837

The adjusting journal entries that Clayborn must record as a result of the bank reconciliation include:A.Debit Cash $4,500; credit Sales $4,500.B.Debit Cash $1,725; credit Notes Receivable $1,725.C.Debit Cash $50; credit Bank Service Fee Expense $50.D.Debit Misc. Expense $3,900; credit Cash $3,900.E.Debit Notes Receivable $1,725; credit Cash $1,725. 

 

146. Easton Co. deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on June 30, its Cash account shows a debit balance of $60,209. Easton’s June bank statement shows $58,349 on deposit in the bank. Determine the adjusted cash balance using the following information:

Deposit in transit………………………………$3,800Outstanding checks……………………………$1,925Check printing fee, not yet recorded by company$15Interest earned on account, not yet recorded   by the company$30

The adjusted cash balance should be:A. $60,194B. $60,239C. $62,149D. $56,424E. $60,224 

 

 

147. Great Falls Co.’s bank reconciliation as of February 28 is shown below.

 

Bank balance

$37,643

Book balance

$38,153

+Deposit in transit

2,950

Note collection

+  745

– Outstanding checks

– 1,730

Check printing

– 35

Adjusted book balance

$38,863

 

$38,863

The adjusting journal entries that Great Falls must record as a result of the bank reconciliation include:A. Debit Note Payable $745; credit Cash $745.B. Debit Cash $745; credit Note Receivable $745.C. Debit Cash $2,950; credit Sales $2,950.D. Debit Cash $2,950; credit Accounts Receivable $2,950E. Debit Miscellaneous Expense $35; credit Accounts Payable $35. 

 

148. Havermill Co. establishes a $250 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $73 for Office Supplies, $137 for merchandise inventory, and $22 for miscellaneous expenses. The fund has a balance of $18. On October 1, the accountant determines that the fund should be increased by $50. The journal entry to record the establishment of the fund on September 1 is: A. Debit Cash $250; credit Petty Cash $250.B. Debit Petty Cash $250; credit Accounts Payable $250.C. Debit Miscellaneous Expense $250; credit Cash $250.D. Debit Petty Cash $250; credit Cash $250.E. Debit Cash $250; credit Accounts Payable $250.

149. Havermill Co. establishes a $250 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $73 for Office Supplies, $137 for merchandise inventory, and $22 for miscellaneous expenses. The fund has a balance of $18. On October 1, the accountant determines that the fund should be increased by $50. The journal entry to record the reimbursement of the fund on September 30 includes a: A. Debit to Office Supplies for $73.B. Credit to Merchandise Inventory for $137.C. Credit to Cash for $250.D. Debit Petty Cash for $232.E. Credit to Cash for $18.

 

150. Havermill Co. establishes a $250 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $73 for Office Supplies, $137 for merchandise inventory, and $22 for miscellaneous expenses. The fund has a balance of $18. On October 1, the accountant determines that the fund should be increased by $50. The journal entry to record the increase in the fund balance on October 1is: A. Debit Petty Cash $300; credit Cash $300.B. Debit Cash $50; credit Petty Cash $50.C. Debit Miscellaneous Expense $50; credit Cash $50.D. Debit Petty Cash $50; credit Accounts Payable $50.E. Debit Petty Cash $50; credit Cash $50.