Question : 58.In a company’s bank reconciliation, an outstanding check a check : 1254463

58.In a company’s bank reconciliation, an outstanding check is a check that:   

A. is guaranteed for payment by the bank.

B. has been issued by the company but has not been presented to the bank for payment.

C. has been presented to the bank for payment but has not been reported on the bank statement.

D. has been written for an amount that is greater than the balance in the account holder’s bank account.

59.Harp Company accepted a check from Jasper Company as payment for services rendered. Harp’s bank statement revealed that the Jasper check was an NSF check. What effect will the entry to record the NSF check have on the accounting equation of Harp Company?     

A. Option A

B. Option B

C. Option C

D. Option D

60.Oliver Company’s unadjusted book balance at June 30, 2013 is $8,700. The company’s bank statement reveals bank service charges of $45. Two credit memos are included in the bank statement: one for $900, which represents a collection that the bank made for Oliver, and one for $50, which represents the amount of interest that Oliver had earned on its interest-bearing account in June. Based on this information, Oliver’s true cash balance is:   

A. $8,700.

B. $9,605.

C. $9,550.

D. $9,695.

61.Davis Company’s unadjusted bank balance at March 31, 2013 is $3,300. The bank reconciliation revealed outstanding checks amounting to $500 and deposits in transit of $400. Based on this information, Davis’s true cash balance is:   

A. $3,400.

B. $3,000.

C. $3,700.

D. $3,200.

62.Ramsey Company’s true cash balance at October 31, 2013 is $3,710. The following information is available for the bank reconciliation:Outstanding checks, $600Deposits in transit, $450Bank service charges, $90The bank had collected an account receivable for Ramsey Company, $1,000The bank statement included an NSF check written by one of Ramsey’s customers for $600.Based on this information Ramsey’s unadjusted book balance at October 31 is:   

A. $3,870.

B. $4,400.

C. $3,400.

D. $3,490.

63.Assuming that the unadjusted bank balance was $600, determine the unadjusted book balance.   

A. $800.

B. $555.

C. $845.

D. $900.

64.The entry to record the customer’s NSF check will:   

A. increase the Accounts Receivable balance.

B. decrease the Cash account.

C. decreaseequity.

D. both A and B.

65.Koger Company’s bank statement included an NSF check written by one of its customers. What effect will the entry to recognize the NSF check have on the company’s financial statements?     

A. Option A

B. Option B

C. Option C

D. Option D

66.On September 30, 2013, the bank statement of Gomez Company showed a balance of $7,300. The following information was revealed by the bank statement:(1) deposits in transit amounted to $3,150(2) outstanding checks amounted to $6,200(3) a $550 check was incorrectly drawn on Gomez’s account(4) NSF checks returned by the bank were $750(5) bank service charge was $29(6) credit memo for $75 for the collection of one of the company’s account receivableBased on the above information the true cash balance was:   

A. $4,800.

B. $4,846.

C. $4,096.

D. $6,596.

67.The owner of the King Company established a petty cash fund amounting to $425. What is the effect on the financial statements of the entry to record this transaction?     

A. Option A

B. Option B

C. Option C

D. Option D