29 which of the following items require an adjustment on the bank side of the bank r 4307016

29 which of the following items require an adjustment on the bank side of the bank r 4307016

29) Which of the following items require an adjustment on the bank side of the bank reconciliation?

A) interest earned

B) a bank service charge

C) a note collected by the bank

D) deposits in transit

30) Which of the following is true of the bank reconciliation?

A) It should not be prepared by an employee who handles cash transactions.

B) It is prepared in place of the cash ledger.

C) It is a financial statement.

D) It guarantees that no errors have been made.

31) A check for which a maker's bank account has inadequate money to pay the check is known as:

A) a nonsufficient funds check.

B) an outstanding check.

C) a restrictive check.

D) a canceled check.

32) The following information is available for Jack's Unlimited Company for the current month.

Book balance end of the month

$6,875

Outstanding checks

655

Deposits in transit

3,500

Service charges

85

Interest revenue

35

What is the adjusted book balance on the bank reconciliation?

A) $9,600

B) $7,480

C) $6,755

D) $6,825

33) A company received a bank statement showing a balance of $75,100. Reconciling items included outstanding checks of $2,250, and a deposit in transit of $9,500. What is the company's adjusted bank balance?

A) $63,350

B) $67,850

C) $82,350

D) $65,600

34) A company received a bank statement with a balance of $6,350. Reconciling items included a bookkeeper error of $300—a $300 check recorded as $600—two outstanding checks totaling $820, a service charge of $25, a deposit in transit of $280, and interest revenue of $21. What is the adjusted bank balance?

A) $5,636

B) $5,610

C) $5,016

D) $5,810

35) A company's cash ledger shows an ending balance of $4,000. Reconciling items included a bookkeeper error of $100 (a $500 check recorded as $600), two outstanding checks totaling $820, a service charge of $25, a deposit in transit of $280, and interest revenue of $31. What is the adjusted book balance?

A) $3,894

B) $3,460

C) $4,106

D) $4,540

36) Which of the following would be included in the journal to record an NSF check?

A) a debit to Accounts Payable and a credit to Cash

B) a debit to Accounts Receivable and a credit to Cash

C) a debit to Cash and a credit to Accounts Receivable

D) a debit to Bank Expense and a credit to Cash

37) Which of the following items would require an adjusting entry after preparation of the bank reconciliation?

A) errors made by the bank revealed by the bank reconciliation

B) all items on the bank's side

C) errors made on the books revealed by the bank reconciliation

D) outstanding checks

38) In reconciling a bank statement, the bank balance is $1,500 and the checkbook balance is $2,105. Which of the following is the most probable reason for the checkbook balance being larger than the bank balance?

A) The bank has not cleared certain outstanding checks.

B) The bank has added interest revenue to the account balance.

C) A deposit in transit was made at the end of the month.

D) The bank received an EFT from a customer.

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