1. Bonita Fertilizer Co. owns the following assets at the balance sheet date. Cash in bank savings account $ 8,480 Cash on hand 860 Cash refund due from the IRS 1,280 Checking account balance 14,210 Postdated checks 530 What amount should Bonita report as cash in the balance sheet? Find Cash reported in balance sheet.
1. Bonita Fertilizer Co. owns the following assets at the
| Cash in bank savings account | $ | 8,480 | ||
| Cash on hand | 860 | |||
| Cash refund due from the IRS | 1,280 | |||
| Checking account balance | 14,210 | |||
| Postdated checks | 530 |
What amount should Bonita report as cash in the balance sheet?
| Find Cash reported in balance sheet. |
2. The following reconciling items are applicable to the bank reconciliation for Ellington Company:
(a) outstanding checks
(b) bank debit memorandum for service charge
(c) bank credit memorandum for collecting a note for the depositor, and
(d) deposits in transit.
Indicate how each item should be shown on a bank reconciliation (Deducted from cash balance per books/Added to Cash balance per books/Added to cash balance per bank/Deducted from cash balance per bank)
3. At July 31, Sunland Company has the following bank information: cash balance per bank $8,380, outstanding checks $712, deposits in transit $1,211, and a bank service charge $26. Determine the adjusted cash balance per bank at July 31.
| What is the Adjusted cash balance per bank? |
4. In the month of November, Bramble Company Inc. wrote checks in the amount of $10,200. In December, checks in the amount of $11,766 were written. In November, $9,000 of these checks were presented to the bank for payment, and $10,977 in December. What is the amount of outstanding checks at the end of November? At the end of December?
5. Indicate whether each of the following statements is true or false.
| 1. | A company has the following assets at the end of the year: cash on hand $40,000, cash refund due from customer $30,000, and checking account balance $22,000. Cash and cash equivalents is therefore $62,000. | |||
| 2. | A company that has received NSF checks should report these checks as a current liability on the balance sheet. | |||
| 3. | Restricted cash that is a current asset is reported as part of cash and cash equivalents. | |||
| 4. | A company has cash in the bank of $50,000, petty cash of $400, and stock investments of $100,000. Total cash and cash equivalents is therefore $50,400. |
6. Swifty Wyatt is unable to reconcile the bank balance at January 31. Swifty’s reconciliation is as follows. Prepare a correct bank reconciliation.
| Cash balance per bank |
$3,820.20
|
|
| Add: NSF check |
560
|
|
| Less: Bank service charge |
31
|
|
| Adjusted balance per bank |
$4,349.20
|
|
| Cash balance per books |
$4,135.20
|
|
| Less: Deposits in transit |
660
|
|
| Add: Outstanding checks |
936
|
|
| Adjusted balance per books |
$4,411.20
|
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
