The balance shown in the August bank statement of a company was $23,200. After examining the August bank statement and items included with it, the company's accountant found:
Checks outstanding $ 4,300
NSF check 140
Note collected by bank for the Colt Company 1,200
Deposits outstanding 1,800
Bank service fees 60
A) $20,700.
B) $17,200.
C) $18,700.
D) $22,200.
Answer: $20,700.,
The balance in a company's Cash account on August 31 was $19,700, before the bank reconciliation was prepared. After examining the August bank statement and items included with it, the company's accountant found:
Checks outstanding $ 4,300
NSF check 140
Note collected by bank for the Colt Company 1,200
Deposits outstanding 1,800
Bank service fees 60
A) $20,700.
B) $17,200.
C) $18,700.
D) $22,200.
Answer: $20,700.,
The following data were obtained from the bank statement and from the process of reconciling the bank balance with the company's cash balance:
Bank service charges $ 20
Deposit outstanding $ 150
Interest earned on the bank account $ 10
Checks outstanding $ 400
A) Deduct checks outstanding; add service charges and deposit outstanding.
B) Deduct interest earned; add deposit outstanding.
C) Deduct checks outstanding; add deposit outstanding.
D) Deduct deposit outstanding; add checks outstanding.
Answer: Deduct checks outstanding; add deposit outstanding.
A) Debit to Advertising Expense.
B) Debit to Cash.
C) Credit to Advertising Expense.
D) No entry is needed.
Answer: No entry is needed.
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.
