Question :
8) The bank would issue a credit memorandum to Maria’s : 1177410
8) The bank would issue a credit memorandum to Maria’s Life Management when the bank:
A) received the deposits in transit.
B) collects a note receivable from a customer.
C) discovered a check that was deposited was returned for nonsufficient funds.
D) None of these answers are correct.
9) How would outstanding checks be handled when reconciling the ending cash balance per the bank statement to the correct adjusted cash balance?
A) They would be added to the balance of the bank statement.
B) They would be subtracted from the balance of the bank statement.
C) They would be added to the balance per books.
D) They would be ignored.
10) An example of electronic funds transfer is:
A) a transfer of funds without the use of paper checks.
B) a transfer of funds by writing a check.
C) the same as a deposit in transit.
D) All of these are correct.
11) Calculate, from the following information accumulated by Sandra Johnson, the adjusted cash balance at the end of April.
Bank statement ending cash balance
$2,000
General ledger cash balance ending
3,250
Bank monthly service charge
45
Deposits in transit
2,500
Outstanding checks
1,500
NSF check returned with bank statement
205
A) $3,000
B) $4,250
C) $4,000
D) $5,500
12) Determine the adjusted cash balance per bank for Santa’s Packaging on November 30, from the following information:
Cash balance on the bank statement
$2,350
Customer’s check returned—NSF
500
Customer’s note collected by the bank
600
Deposits in transit, November 30
1,400
Outstanding checks, November 30
2,650
A) $1,250
B) $1,100
C) $1,550
D) $1,350
13) Information to calculate the adjusted cash balance for Sam’s Gift Wrapping is as follows:
Cash balance per general ledger
$2,100
Customer’s check returned—NSF
75
Bank service charges
40
Deposits in transit
500
Outstanding checks
700
Customer’s note collected by bank
645
A) $2,330
B) $2,430
C) $2,630
D) $2,230
14) The May bank statement for Accounting Services shows a balance of $6,300, but the balance per books shows a cash balance of $7,980. Other information includes:
1. A check for $200 to pay the electric bill was recorded on the books as $20.
2. Included on the bank statement was a note collected by the bank for $400 plus interest of $30
3. Checks outstanding totaled $260.
4. Bank service charges were $50.
5. Deposits in transit were $2,140.
The adjusted cash balance at the end of August should be:
A) $9,810.
B) $7,620.
C) $7,980.
D) $8,180.
15) The May bank statement for Accounting Services shows a balance of $6300, but the balance per books shows a cash balance of $7,980. Other information includes:
1. A check for $200 to pay the electric bill was recorded on the books as $20.
2. Included on the bank statement was a note collected by the bank for $400 plus interest of $30.
3. Checks outstanding totaled $260.
4. Bank service charges were $50.
5. Deposits in transit were $2,140.
Which item should be added to the company’s book balance during the bank reconciliation?
A) Deposit in transit
B) Check outstanding
C) Bank service charge
D) Note collected by the bank
16) The May bank statement for Accounting Services shows a balance of $6,300, but the balance per books shows a cash balance of $7,980. Other information includes:
1. A check for $200 to pay the electric bill was recorded on the books as $20.
2. Included on the bank statement was a note collected by the bank for $400 plus interest of $30.
3. Checks outstanding totaled $260.
4. Bank service charges were $50.
5. Deposits in transit were $2,140.
Which item(s) should be subtracted from the balance per books?
A) Bank service charge
B) Checks outstanding and bank service charge
C) Bank service charge and the note collected by the bank
D) None of the above are correct.
