Question : 31. While preparing the February 28th bank reconciliation for the checking : 1224900

 

 

31. While preparing the February 28th bank reconciliation for the checking account for Willow, Inc., the accountant identified the following items: 

Balance per Willow’s company records

$46,200

Outstanding checks

1,100

Interest earned on the checking account

50

A customer’s NSF check returned by the bank

500

 

 

In addition, Willow made an error in recording a customer’s check; the amount was recorded in cash receipts as $150, while the bank correctly recorded the amount as $510. What amount will Willow report as its actual cash balance on February 28th? A. $44,650B. $45,890C. $46,110D. $46,250

 

32. While preparing the April 30th bank reconciliation for the checking account for Calvin Corporation, the accountant identified the following items: 

Balance per Calvin’s company records

$15,000

Outstanding checks

2,500

Bank service charge

15

A customer’s NSF check returned by the bank

100

 

 

What amount will Calvin report as its actual cash balance at April 30th? A. $12,385B. $12,500C. $14,885D. $17,385

 

33. Sparrow CorporationThe items listed below were identified while preparing a bank reconciliation for the checking account of Sparrow Corporation as of March 31, 2012. 

Sparrow’s balance according to the general ledger

?

Bank statement balance

$18,500

Outstanding checks

2,700

A customer’s NSF check returned by the bank

350

Bank service charges

100

Deposits in transit

1,000

Interest earned on the checking account

60

 

 

Refer to the information presented for Sparrow Corporation. How will the deposits in transit be handled within a bank reconciliation? A. Add to the balance from the company recordsB. Subtract from the balance from the company recordsC. Add to the bank statement balanceD. Subtract from the bank statement balance

 

34. Sparrow CorporationThe items listed below were identified while preparing a bank reconciliation for the checking account of Sparrow Corporation as of March 31, 2012. 

Sparrow’s balance according to the general ledger

?

Bank statement balance

$18,500

Outstanding checks

2,700

A customer’s NSF check returned by the bank

350

Bank service charges

100

Deposits in transit

1,000

Interest earned on the checking account

60

 

 

Refer to the information presented for Sparrow Corporation. How will the customer’s bounced checks be handled within a bank reconciliation? A. Add to the balance from the company recordsB. Subtract from the balance from the company recordsC. Add to the bank statement balanceD. Subtract from the bank statement balance

 

35. Sparrow CorporationThe items listed below were identified while preparing a bank reconciliation for the checking account of Sparrow Corporation as of March 31, 2012. 

Sparrow’s balance according to the general ledger

?

Bank statement balance

$18,500

Outstanding checks

2,700

A customer’s NSF check returned by the bank

350

Bank service charges

100

Deposits in transit

1,000

Interest earned on the checking account

60

 

 

Refer to the information presented for Sparrow Corporation. How will the interest earned on the checking account be handled within a bank reconciliation? A. Add to the balance from the company recordsB. Subtract from the balance from the company recordsC. Add to the bank statement balanceD. Subtract from the bank statement balance

 

36. Sparrow CorporationThe items listed below were identified while preparing a bank reconciliation for the checking account of Sparrow Corporation as of March 31, 2012. 

Sparrow’s balance according to the general ledger

?

Bank statement balance

$18,500

Outstanding checks

2,700

A customer’s NSF check returned by the bank

350

Bank service charges

100

Deposits in transit

1,000

Interest earned on the checking account

60

 

 

Refer to the information presented for Sparrow Corporation. How will the outstanding checks be handled within a bank reconciliation? A. Add to the balance in the company’s recordsB. Subtract from the balance in the company’s recordsC. Add to the bank statement balanceD. Subtract from the bank statement balance

 

37. Sparrow CorporationThe items listed below were identified while preparing a bank reconciliation for the checking account of Sparrow Corporation as of March 31, 2012. 

Sparrow’s balance according to the general ledger

?

Bank statement balance

$18,500

Outstanding checks

2,700

A customer’s NSF check returned by the bank

350

Bank service charges

100

Deposits in transit

1,000

Interest earned on the checking account

60

 

 

Refer to the information presented for Sparrow Corporation. How will the bank services charges be handled within a bank reconciliation? A. Add to the balance in the company’s recordsB. Subtract from the balance in the company’s recordsC. Add to the bank statement balanceD. Subtract from the bank statement balance

 

38. Sparrow CorporationThe items listed below were identified while preparing a bank reconciliation for the checking account of Sparrow Corporation as of March 31, 2012. 

Sparrow’s balance according to the general ledger

?

Bank statement balance

$18,500

Outstanding checks

2,700

A customer’s NSF check returned by the bank

350

Bank service charges

100

Deposits in transit

1,000

Interest earned on the checking account

60

 

 

Refer to the information presented for Sparrow Corporation. Determine the amount of Sparrow’s actual cash balance. A. $16,800B. $20,200C. $  1,700D. Cannot be determined

 

39. Sparrow CorporationThe items listed below were identified while preparing a bank reconciliation for the checking account of Sparrow Corporation as of March 31, 2012. 

Sparrow’s balance according to the general ledger

?

Bank statement balance

$18,500

Outstanding checks

2,700

A customer’s NSF check returned by the bank

350

Bank service charges

100

Deposits in transit

1,000

Interest earned on the checking account

60

 

 

Refer to the information presented for Sparrow Corporation. Determine the amount of the balance per Sparrow’s records before adjustment. A. $16,410B. $16,900C. $17,190D. $17,310

 

40. While reconciling the checking account, an accountant with Elliter, Inc. noticed that an error had been made in recording a check received by the company. Elliter recorded the receipt as $729 and the correct amount of the check was $279. Which of the following reconciling adjustments is necessary? A. Add $450 to the company’s records.B. Deduct $450 from the company’s records.C. Add $450 to the bank statement balance.D. Deduct $450 from the bank statement balance.