A bank reconciliation must be performed. First you collect the data from June 30th reconciliation as follows: Balance per Bank $ 10,000 add: Deposits in Transit $ 1,800 deduct: Outstanding Cheques $ (2,200 Balance per Books $ 9,600 Second you close your update your Cash and bank account with all transactions recorded before AJE and you have: Balance July 31 $ 12,000 Deposits $ 7,300 Cheques $ 4,800 Third you look at the bank statement provided by your bank and you see the following: Balance July 31 $ 12,430 Deposits $ 6,000 Cheques $ 4,000 Note collected $ 1,000 Bank service charge $ 20 NSF cheque $ 150 Interest received $ 200 Autowithdrawals $ 500 Which of the following adjusting journal entries is required after the bank reconciliation has been prepared? Dr. Cash $20 Cr. bank fees $20 (to reflect bank fees for the month) Dr. Phone Expenses $500 Cr. Cash $500 (to reflect the automatic payment of the phone - autowithdraw) Dr. Interest revenue $200 Cr. Cash $200 (to reflect interest earned on bank balance) Dr Cash $150 Cr. Accounts Receivables $150 (to reflect the NSF cheque None of the other alternatives are correct
A bank reconciliation must be performed. First you collect the data from June 30th reconciliation as follows: Balance per Bank $ 10,000 add: Deposits in Transit $ 1,800 deduct: Outstanding Cheques $ (2,200 Balance per Books $ 9,600 Second you close your update your Cash and bank account with all transactions recorded before AJE and you have: Balance July 31 $ 12,000 Deposits $ 7,300 Cheques $ 4,800 Third you look at the bank statement provided by your bank and you see the following: Balance July 31 $ 12,430 Deposits $ 6,000 Cheques $ 4,000 Note collected $ 1,000 Bank service charge $ 20 NSF cheque $ 150 Interest received $ 200 Autowithdrawals $ 500 Which of the following adjusting journal entries is required after the bank reconciliation has been prepared? Dr. Cash $20 Cr. bank fees $20 (to reflect bank fees for the month) Dr. Phone Expenses $500 Cr. Cash $500 (to reflect the automatic payment of the phone - autowithdraw) Dr. Interest revenue $200 Cr. Cash $200 (to reflect interest earned on bank balance) Dr Cash $150 Cr. Accounts Receivables $150 (to reflect the NSF cheque None of the other alternatives are correct
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A bank reconciliation must be performed. First you collect the data from June 30th reconciliation as follows:
| Balance per Bank | $ | 10,000 |
| add: Deposits in Transit | $ | 1,800 |
| deduct: Outstanding Cheques | $ | (2,200 |
| Balance per Books | $ | 9,600 |
Second you close your update your Cash and bank account with all transactions recorded before AJE and you have:
| Balance July 31 | $ | 12,000 |
| Deposits | $ | 7,300 |
| Cheques | $ | 4,800 |
Third you look at the bank statement provided by your bank and you see the following:
| Balance July 31 | $ | 12,430 |
| Deposits | $ | 6,000 |
| Cheques | $ | 4,000 |
| Note collected | $ | 1,000 |
| Bank service charge | $ | 20 |
| NSF cheque | $ | 150 |
| Interest received | $ | 200 |
| Autowithdrawals | $ | 500 |
Which of the following
-
Dr. Cash $20 Cr. bank fees $20 (to reflect bank fees for the month)
-
Dr. Phone Expenses $500 Cr. Cash $500 (to reflect the automatic payment of the phone - autowithdraw)
-
Dr. Interest revenue $200 Cr. Cash $200 (to reflect interest earned on bank balance)
-
Dr Cash $150 Cr.
Accounts Receivables $150 (to reflect the NSF cheque - None of the other alternatives are correct
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