Question :
11) First Bank charged Team Shirts $100 in services charges : 1253224
11) First Bank charged Team Shirts $100 in services charges for September. On the bank reconciliation, the $100 should be ________.
A) added to the balance per books
B) deducted from the balance per books
C) added to the balance per bank statement
D) deducted from the balance per bank statement
12) Goldilocks is the bookkeeper for Three Bears Company. She prepared the company’s bank reconciliation at the end of the year and found only two reconciling items: deposits in transit of $2,850 and outstanding checks of $3,500. She then made an adjusting entry to decrease the company’s cash balance for the deposits in transit and increase the company’s cash balance for the outstanding checks. Now the company’s cash balance is exactly the same as the bank statement balance. As a result of the adjusting entry, the cash shown on Three Bears Company’s year-end balance sheet will be ________.
A) too high
B) too low
C) just right
D) The answer cannot be determined from the information given.
13) X Company used the following items to complete its bank reconciliation for the month of October:
? Deposits in transit were $2,500.
? Outstanding checks totaled $1,100.
? Bank service charges were $10.
? The company correctly wrote a check for $192, but mistakenly recorded the check as $129 on its books. The bank cashed the check correctly for $192.
? A customer’s check for $50 was returned by the bank, NSF.
The $2,500 deposit in transit should be ________.
A) added to the balance per bank statement
B) deducted from the balance per bank statement
C) added to the balance per books
D) deducted from the balance per books
14) According to its August 31 bank statement, X Co’s bank account held $10,000. Deposits in transit were $3,000; outstanding checks were $1,000; bank service charges were $10; and a customer’s check for $50 was returned NSF. How much cash should X Co report on its August 31 balance sheet?
A) $10,000
B) $12,000
C) $9,940
D) $8,000
15) X Company used the following items to complete its bank reconciliation for the month of October:
? Deposits in transit were $2,500.
? Outstanding checks totaled $1,100.
? Bank service charges were $10.
? The company correctly wrote a check for $192, but mistakenly recorded the check as $129 on its books. The bank cashed the check correctly for $192.
? A customer’s check for $50 was returned by the bank, NSF.
The $1,100 of outstanding checks should be ________.
A) added to the balance per bank statement
B) deducted from the balance per bank statement
C) added to the balance per books
D) deducted from the balance per books
16) X Company used the following items to complete its bank reconciliation for the month of October:
? Deposits in transit were $2,500.
? Outstanding checks totaled $1,100.
? Bank service charges were $10.
? The company correctly wrote a check for $192, but mistakenly recorded the check as $129 on its books. The bank cashed the check correctly for $192.
? A customer’s check for $50 was returned by the bank, NSF.
How should the check for $192 that was recorded as $129 be treated?
A) added to the balance per bank statement
B) deducted from the balance per bank statement
C) added to the balance per books
D) deducted from the balance per books
17) X Company used the following items to complete its bank reconciliation for the month of October:
? Deposits in transit were $2,500.
? Outstanding checks totaled $1,100.
? Bank service charges were $10.
? The company correctly wrote a check for $192, but mistakenly recorded the check as $129 on its books. The bank cashed the check correctly for $192.
? A customer’s check for $50 was returned by the bank, NSF.
How should the customer’s check for $50 that was returned by the bank, NSF, be treated?
A) added to the balance per bank statement
B) deducted from the balance per bank statement
C) added to the balance per books
D) deducted from the balance per books
18) X Company used the following items to complete its bank reconciliation for the month of October:
? Deposits in transit were $2,500
? Outstanding checks totaled $1,100
? Bank service charges were $10
? The company correctly wrote a check for $192, but mistakenly recorded the check as $129 on its books. The bank cashed the check correctly for $192.
? A customer’s check for $50 was returned by the bank, NSF
According to the bank statement, the cash balance was $10,000. How much cash should X Company show on its October 31 balance sheet?
A) $10,000
B) $11,350
C) $11,400
D) $12,500
19) Making a comparison between the cash balance in the accounting records and on the bank statement is called a bank reconciliation.
20) In preparing a bank reconciliation, outstanding checks are added to the balance per books.
21) “NSF” checks are checks that have been deposited in the bank, but “bounced”.
22) On a bank reconciliation, outstanding checks and NSF checks are deductions from the bank balance.
23) If you bank on-line, you can view your bank balance at any time and see exactly how much cash you have available to pay bills.
