Cash transactions recorded by the bank but not yet recorded by the company include all of the following except -
A) Service fees.
B) Interest earned.
C) Checks outstanding.
D) NSF checks.
Answer: Checks outstanding.
Saturday, October 10, 2020
What is the amount of cash that should be reported in the company's balance sheet as of May 31?
On May 31, Money Corporation's Cash account showed a balance of $10,000 before the bank reconciliation was prepared. After examining the May bank statement and items included with it, the company's accountant found the following items:
Checks outstanding- $ 2,250
Deposits outstanding- 1,900
NSF check- 100
Service fees-40
Error: Money Corp. wrote a check for $30 but recorded it incorrectly for $300.
What is the amount of cash that should be reported in the company's balance sheet as of May 31?
A) $9,860.
B) $9,650.
C) $10,130.
D) $10,410.
Answer: $10,130,
Which of the following would NOT need to be accounted for in a bank reconciliation?
Which of the following would NOT need to be accounted for in a bank reconciliation?
A) Deposits recorded by the company but not the bank.
B) Interest recorded by the bank but not the company.
C) NSF checks recorded by the bank but not by the company.
D) Checks written by the company and recorded by the bank.
Answer: Checks written by the company and recorded by the bank.
Regarding a bank reconciliation, which one of the following is an item recorded by the company but not by the bank?
Regarding a bank reconciliation, which one of the following is an item recorded by the company but not by the bank?
A) Checks outstanding.
B) Interest earned.
C) Service charges.
D) NSF checks.
Answer: Checks outstanding.
What is the correct cash balance for the company?
The following information pertains to a company's cash balance and bank reconciliation as of August 31:
Company balance before reconciliation $ 5,000
Checks outstanding $ 2,500
Notes collected by the bank $ 2,200
Service fee $ 50
Deposits outstanding $ 2,000
What is the correct cash balance for the company?
A) $7,150.
B) $5,150.
C) $7,650.
D) $7,250.
Answer: $7,150,
When preparing a bank reconciliation, a deposit outstanding would be:
When preparing a bank reconciliation, a deposit outstanding would be:
A) Added to the company's cash balance.
B) Added to the bank's cash balance.
C) Subtracted from the company's cash balance.
D) Subtracted from the bank's cash balance.
Answer: Added to the bank's cash balance.
After preparing the bank reconciliation, an NSF check would result in which of the following when recording the adjustment to the company's cash balance?
After preparing the bank reconciliation, an NSF check would result in which of the following when recording the adjustment to the company's cash balance?
A) Debit to Service Fee Expense.
B) Credit to Accounts Payable.
C) Credit to Service Revenue.
D) Debit to Accounts Receivable.
Answer: Debit to Accounts Receivable.
Subscribe to:
Posts (Atom)