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.
