Question : 51.A check issued for $890 to pay a vendor account : 1220611

51.A check issued for $890 to pay a vendor on account was recorded in the firm’s records as $980; the canceled check was properly listed on the bank statement at $890. To arrive at an accurate balance on a bank reconciliation statement, the error should be  

A.added to the bank statement balance.

B.added to the book balance.

C.deducted from the bank statement balance.

D.deducted from the book balance.

52.A check issued for $1,980 to pay a vendor on account was recorded in the firm’s records as $1,890; the canceled check was properly listed on the bank statement at $1,980. To arrive at an accurate balance on a bank reconciliation statement, the error should be  

A.added to the bank statement balance.

B.added to the book balance.

C.deducted from the bank statement balance.

D.deducted from the book balance.

53.To arrive at an accurate balance on a bank reconciliation statement, deposits in transit should be  

A.added to the bank statement balance.

B.added to the book balance.

C.deducted from the bank statement balance.

D.deducted from the book balance.

54.A firm appropriately wrote a check for $78 but entered the amount as payment of $87 in its records. On a bank reconciliation statement this error would be shown as  

A.a deduction of $9 from the book balance.

B.an addition of $9 to the book balance.

C.a deduction of $9 from the bank statement balance.

D.an addition of $9 to the bank statement balance.

55.Which of the following would not be shown as an adjustment to the book balance on a bank reconciliation statement?  

A.Bank service charges

B.NSF checks

C.Deposits in transit

D.A charge for printing new checks

56.Included with its bank statement a firm may receive a credit memorandum, which could indicate  

A.a bank service charge deducted from the firm’s account balance.

B.the bank’s return of a dishonored (NSF) check that was issued by a credit customer of the firm.

C.a fee for printing new business checks.

D.an addition to the firm’s account balance because the bank collected the amount due on a promissory note from a customer of the firm.

57.If a check written by a firm is not canceled by the bank and returned with the month’s bank statement, the firm should  

A.consider this check as outstanding when preparing the bank reconciliation.

B.immediately notify the bank requesting that it correct its records.

C.adjust the balance in the firm’s checkbook to reflect the data that appears in the bank’s records.

D.make no adjustment when preparing the bank reconciliation.

58.Identify the items below that would all appear as an addition or subtraction from the Book Balance side of a bank reconciliation statement.  

A.Outstanding checks, customer NSF check.

B.Deposits in transit, bank service charges.

C.Bank service charges, customer NSF check.

D.Outstanding checks, deposits in transit.

59.After a bank reconciliation statement is completed, a firm may have to make an entry in its accounting records for  

A.outstanding checks.

B.deposits in transit.

C.the bank statement balance.

D.NSF checks.

60.The entry in a firm’s accounting records for a credit customer’s check that was returned by the bank marked “NSF” would include  

A.a debit to Miscellaneous Expense and a credit to Cash.

B.a debit to Accounts Receivable and a credit to Accounts Payable.

C.a debit to Accounts Receivable and a credit to Cash.

D.a debit to Cash and a credit to Accounts Receivable.

61.Of the four categories listed in a bank reconciliation, which one(s) require a journal entry(ies) in the firm’s records?  

A.Bank Statement Balance Additions and Bank Statement Balance Deductions

B.Bank Statement Balance Additions and Book Balance of Cash Additions

C.Bank Statement Balance Deductions and Book Balance of Cash Deductions

D.Book Balance of Cash Additions and Book Balance of Cash Deductions

62.During the month a company paid $54.75 for office supplies and $63.22 for miscellaneous expenses from the petty cash fund. The entry to replenish the petty cash fund at the end of the month would include  

A.a debit to Petty Cash for $117.97.

B.a debit to Cash for $117.97.

C.a credit to Cash for $117.97.

D.a credit to Office Supplies for $54.75.