A) Credit to Service Fees Expense.
B) Debit to Cash.
C) Credit to Service Fees Revenue.
D) Debit to Service Fees Expense.
Answer: Debit to Service Fees Expense.
A) Credit to Notes Receivable.
B) Credit to Cash.
C) Debit to Notes Receivable.
D) Credit to Accounts Receivable.
Answer: Credit to Notes Receivable.
A) NSF checks.
B) Interest earned.
C) Service fees.
D) Deposits outstanding.
Answer: Deposits outstanding.
The following information was taken from a company's bank reconciliation at the end of the year:
Bank balance $ 8,000
Checks outstanding $ 5,800
Note collected by the bank $ 1,500
Service fee $ 20
Deposits outstanding $ 4,000
NSF check $ 300
A) $10,200.
B) $7,400.
C) $6,200.
D) $6,160.
Answer: $6,200.,
A) Service fees.
B) Interest earned.
C) Checks outstanding.
D) NSF checks.
Answer: Checks outstanding.
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.
A) $9,860.
B) $9,650.
C) $10,130.
D) $10,410.
Answer: $10,130,
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.
