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41) The bank statement reveals an EFT received from a

Question : 41) The bank statement reveals an EFT received from a : 1412200

 

41) The bank statement reveals an EFT received from a customer that has not yet been recorded in the ledger. How would this information be included on the bank reconciliation?

A) an addition on the bank side

B) a deduction on the bank side

C) a deduction on the book side

D) an addition on the book side

 

42) The bank statement reveals an EFT payment made to one of the company's suppliers that has not yet been recorded in the ledger. How would this information be included on the bank reconciliation?

A) an addition on the bank side

B) a deduction on the bank side

C) a deduction on the book side

D) an addition on the book side

43) A ________ is a document explaining the reasons for the difference between a depositor's cash records and the depositor's cash balance in its bank account.

A) bank statement

B) deposit receipt

C) bank reconciliation

D) remittance advice

 

44) The following information is available for Jade Company for the month ending June 30, 2014.

?Balance as per the bank statement is $11,240.

?Balance as per books is $10,200.

?Check #506 for $1,200 and check #510 for $900 were not shown on the June 30, bank statement.

?A deposit in transit of $3,110 had not been received by the bank when the bank statement was generated.

?A bank debit memo indicated an NSF check for $85 written by Jane Smith to Jade Company on June 13.

?A bank credit memo indicated a note collected by the bank of $2,100 and interest revenue of $55 on June 20.

?The bank statement indicated service charges of $20.

What is the adjusted book balance?

A) $12,740

B) $12,250

C) $8,150

D) $8,200

 

45) No journal entries are required for the reconciling items on the bank side because ________.

A) those transactions have already been recorded in the company ledger

B) the adjusted balances on both sides are the same amounts

C) the amounts are immaterial

D) those transactions are already included in the bank balance.

46) Journal entries are required for the reconciling items on the book side because ________.

A) those transactions have not yet been recorded by the bank

B) the adjusted balances on both sides are the same amounts

C) the amounts are immaterial

D) those transactions have not yet been recorded on the company books

 

47) The bookkeeper of Fire Steel Inc. recorded a $1,524 check as $15,240 in payment of the current month's rent. Which of the following journal entries is needed to adjust for this error in the books of the company?

A)

Cash

13,716

 

        Sales Revenue

 

13,716

 

B)

Rent Expense

15,240

 

        Cash

 

1,524

 

C)

Cash

13,716

 

        Rent Expense

 

13,716

 

D)

Booking Error

1,524

 

        Cash

 

1,524

 

 

48) A customer's check for $1,280 was returned for nonsufficient funds. Which of the following journal entries is needed to adjust for the NSF check?

A)

Accounts receivable

1,280

 

        Cash

 

1,280

 

B)

Cash

1,280

 

        Sales revenue

 

1,280

 

C)

NSF check

1,280

 

        Cash

 

1,280

 

D)

Accounts payable

1,280

 

        Cash

 

1,280

 

49) The following information is needed to reconcile the cash balance for Fire Steel Inc.

?A deposit of $5,800 is in transit.

?Outstanding checks total $1,500.

?The book balance is $6,800 at February 28, 2013.

?The bookkeeper recorded a $1,740 check as $17,400 in payment of the current month's rent.

?The bank balance at February 28, 2013 was $18,000.

?A deposit of $400 was credited by the bank for $4,000.

?A customer's check for $3,700 was returned for nonsufficient funds.

?The bank service charge is $60.

What was the adjusted book balance?

A) $18,720

B) $18,060

C) $18,700

D) $18,820

 

50) The following information is needed to reconcile the cash balance for Fire Steel Inc.

?A deposit of $5,800 is in transit.

?Outstanding checks total $1,500.

?The book balance is $6,800 at February 28, 2013.

?The bookkeeper recorded a $1,740 check as $17,400 in payment of the current month's rent.

?The bank balance at February 28, 2013 was $18,000.

?A deposit of $400 was credited by the bank for $4,000.

?A customer's check for $3,700 was returned for nonsufficient funds.

?The bank service charge is $60.

What was the adjusted bank balance?

A) $18,720

B) $18,700

C) $18,820

D) $18,060

 

 

 

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