Question :
41) The ending bank statement balance for November $9,845. The : 1230136
41) The ending bank statement balance for November is $9,845. The bank statement shows a service charge of $95, electronic funds receipts of $500, and a NSF check for $350. Deposits in transit total $2,050 and outstanding checks are $1,835. What is the adjusted bank balance?
A) $8,900
B) $10,060
C) $10,115
D) $13,730
42) Carla Company’s cash balance at the end of the month was $6,500. After comparing the company’s records with the monthly bank statement, Carla’s accountant identified the following reconciling items: outstanding checks, $800; deposits in transit, $700; bank service charge, $30; NSF check, $500. What is the adjusted book balance?
A) $6,600
B) $5,970
C) $6,370
D) The adjusted book balance cannot be determined from this information.
43) Prepare the bank reconciliation for June 30 and make the journal entries that Apples Galore, Inc. should record on June 30 to update its cash account.
•The bank statement indicated a monthly service charge of $110.
•Janus made a deposit on June 30, but this deposit did not appear on the bank statement until July 6th. The amount of the deposit was, $1,835.
•An electronic funds deposit per the bank statement indicated the bank collected an account receivable of $700 from one of Apple Galore’s customers.
•The bank also collected interest revenue for Apple Galore of $88.
•The bank also returned a nonsufficient funds check for $378 from John Able, one of Apple Galore’s customers.
•Checks #1874 for $1,844, #1898 for $609, and #1899 for $875 were written by Apple Galore and sent to the respective companies, but these checks do not appear on the bank statement.
•The balance on the bank statement as of June 30 was $18,119.
•The Cash account on Apple Galore’s books showed an amount of $16,326.
44) Prepare a bank reconciliation using Fancy Clothing Store’s information for August 31.
•Two deposits made on August 31 were not on the bank statement, totaling $7,413.
•The note.
•August 31 balance in Cash was $11,677.
•The bookkeeper forgot to record check # 1578 for $843 which was cashed by the bank on August 15th.
•The balance on the bank bank collected an EFT payment on a note receivable for $2,750. Of this amount, $150 represented interest on the statement as of August 31 was $8,387.
•Bank service charge of $140 was shown on the bank statement.
•Checks #1572, 1606, and 1548, totaling $2,356, were not shown on the bank statement, even though the company had sent the checks.
45) Use the information below for Jamie Horiwitz Co. for March 31, to prepare a bank reconciliation to determine the balance in the Cash account as of March 31, before any reconciling items.
•Adjusted bank balance as of March 31 was $6,365.
•Outstanding checks totaled $850.
•Bud Harper’s check for $260 was returned for NSF.
•March’s service charge was $25.
•Bank collected $2,550 a note receivable for the company, which included interest of $50.
•A new bookkeeper had problems posting checks:
# 930 for Rent Expense written for $900, recorded as $90
#1207 for Office Equipment written for $8,450, recorded as $4,850.
•A deposit was shown on the bank statement as $965, when the deposit ticket was correctly totaled to be $695.
•Deposits made at month-end totaled $4,516; these were not shown on bank statement.
Answer:
46) The information below was used to prepare a bank reconciliation for Pumpkin Farm Company. for October 31. Use the information to prepare any necessary journal entries as of October 31. NOTE: It is NOT necessary to prepare a bank reconciliation.
•Adjusted bank balance as of October 31 was $8,765.
•Outstanding checks totaled $1,433.
•A customer’s check for $854 was returned for NSF.
•March’s service charge was $85.
•Bank collected $1,600 from a customer of Pumpkin Farm in payment of a note receivable, including interest of $100.
•A new bookkeeper had problems posting checks and recording cash receipts:
1.Check # 930 for Salaries Expense written for $430, recorded as $930.
2.A deposit for $2,300 for a sale on October 15 was not recorded by the bookkeeper since she was in a hurry to go to lunch.
•A deposit was made by the company for $900. This was the correct amount, however, the bank made a mistake and recorded the deposit as $890.
•Deposits made at month-end totaled $4,516; these were not shown on bank statement.
