Question : 41) If the bank mistakenly recorded a $71 deposit as : 1212706

41) If the bank mistakenly recorded a $71 deposit as $17, the error would be shown on the bank reconciliation as a:

A) $71 addition to the bank balance.

B) $54 addition to the bank balance.

C) $71 deduction from the bank balance.

D) $54 deduction from the bank balance.

 

42) Interest revenue appears on a bank reconciliation as a(n):

A) deduction from the book balance.

B) deduction from the bank balance.

C) addition to the book balance.

D) addition to the bank balance.

 

43) Interest expense appears on a bank reconciliation as a(n):

A) deduction from the book balance.

B) deduction from the bank balance.

C) addition to the book balance.

D) addition to the bank balance.

44) A bank service charge appears on a bank reconciliation as a(n):

A) addition to the book balance.

B) addition to the bank balance.

C) deduction from the book balance.

D) deduction from the bank balance.

 

45) If a bank reconciliation included a credit memo for a $2,000 note collected with an additional $20 of interest revenue, the entry to record this reconciling item would include a:

A) credit to note receivable for $2,020.

B) credit to cash for $2,020.

C) debit to cash for $2,020.

D) No entry is required.

 

46) The following information is available for Matt’s Unlimited Company for the current month. What is the adjusted book balance on the bank reconciliation?

 

Book balance end of the month

$5,575

Outstanding checks

584

Deposits in transit

2,500

Service charges

75

Interest revenue

25

 

A) $7,466

B) $5,500

C) $5,550

D) $5,525

47) The following information is available for Andersen Company for the month ending June 30, 2014.

 

•Balance per the bank statement is $10,241.43.

•Balance per books is $9,745.06.

•Cheque #506 for $1,948.52 and cheque #510 for $1,800.25 were not shown on the June 30 bank statement.

•A deposit in transit of $5,113.40 had not been received by the bank when the bank statement was generated.

•A bank debit memo indicated an NSF cheque in the amount of $79 written by Bruce Garrett to Andersen Company on June 13.

•A bank credit memo indicated a note collected by the bank of $1,900 and interest revenue of $75 on June 20.

•The bank statement indicated service charges of $35.

 

What is the adjusted book balance?

A) $7,884.06

B) $11,606.06

C) $11,109.69

D) $7,971.29

48) The following information is needed to reconcile the cash balance for Woods Paper Products.

 

•A deposit of $5,794.62 is in transit.

•Outstanding checks total $1,533.25.

•The book balance is $5,695.62.

•The bookkeeper recorded a $1,524.00 cheque as $15,240 in payment of the current month’s rent.

•The bank balance at February 28, 2008 was $16,500.25.

•A deposit of $300 was credited by the bank for $3,000.

•A customer’s cheque for $1,280 was returned for non-sufficient funds.

•The bank service charge is $70.

 

What was the adjusted bank balance?

A) $6,472.38

B) $18,061.62

C) $9,355.63

D) $14,938.88

 

49) Which of the following items are both reconciling items on the bank side of the reconciliation?

A) Outstanding cheques and correction of book error

B) Deposit in transit and NSF cheque

C) Deposit in transit and outstanding cheques

D) Bank service charge and correction of book error

 

50) Which of the following items are both reconciling items on the book side of the reconciliation?

A) Outstanding cheques and correction of book error

B) Deposit in transit and NSF cheque

C) Bank service charge and outstanding cheques

D) Bank service charge and correction of book error

51) In reconciling a bank statement, the bank balance is $1000 and the checkbook balance is $1205. Which of the following is the MOST probable reason why the chequebook balance is larger than the bank balance?

A) The bank has not cleared certain cheques.

B) The bank has added interest revenue to the account balance.

C) A deposit in transit was made at the end of the month.

D) The bank received an EFT from a customer.

 

52) In reconciling a bank statement, the bank balance is $1,800 and the chequebook balance is $1,205. Which of the following is the MOST probable reason why the bank balance is larger than the book balance?

A) There are outstanding cheques.

B) The bank has deducted certain amounts for bank service charges.

C) A deposit in transit was made at the end of the month.

D) The company erroneously recorded a cheque for an amount less than actual.