Below, preceded by identifying letters, are seven items that would cause Xavier Sales Company's book balance of cash to differ from its bank statement balance. (a) A customer's cheque returned by the bank marked "Not Sufficient Funds." A customer's cheque returned by the bank marked "Not Sufficient Funds." (b)A cheque listed as outstanding on the previous month's reconciliation that is still outstanding. (c) A service charge made by the bank. (d)A deposit consisting solely of cheques which was mailed to the bank on the last day of November and is unrecorded on the November bank statement. (e)A cheque paid by the bank at its correct $200 amount but recorded in error in the Cheque Register at $20. (f) An unrecorded credit memorandum indicating the bank had collected a note receivable for Xavier Sales Company and deposited the proceeds in the company's account. (9)A cheque written but not yet paid or returned by the bank.

Below, preceded by identifying letters, are seven items that would cause Xavier Sales Company's book balance of cash to differ from its bank statement balance. (a) A customer's cheque returned by the bank marked "Not Sufficient Funds." A customer's cheque returned by the bank marked "Not Sufficient Funds." (b)A cheque listed as outstanding on the previous month's reconciliation that is still outstanding. (c) A service charge made by the bank. (d)A deposit consisting solely of cheques which was mailed to the bank on the last day of November and is unrecorded on the November bank statement. (e)A cheque paid by the bank at its correct $200 amount but recorded in error in the Cheque Register at $20. (f) An unrecorded credit memorandum indicating the bank had collected a note receivable for Xavier Sales Company and deposited the proceeds in the company's account. (9)A cheque written but not yet paid or returned by the bank.

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter5: Cash Control Systems

Section: Chapter Questions

Problem 2AP

See similar textbooks

Similar questions

Which of the following items are found on a book side of the bank reconciliation? A. beginning bank balance B. outstanding checks C. interest income D. error made by bank
The bank reconciliation revealed that one deposit had cleared the bank two weeks after the date of the deposit. Should this be of concern? Why, or why not?
Assume that Johnson and Johnson company received the cheque of OMR 197 form it's debtor ( Accounts receivables ) . But the accountant of the company recorded it as OMR 179 and sent to bank for deposit How will you adjust the above reconciliation item in Bank reconciliation statement ? a . Add OMR 197 to cash book balance b . Add OMR 18 to cash book balance c . Deduct OMR 18 from Bank statement balance d . Less OMR 179 from bank statement balance
Identify whether each of the following items would be (a) added to the book balance, or (b) deducted from the book balance in a bank reconciliation. 1. EFT transfer to a supplier. 2. Bank service charge. 3. Check printing charge. 4. Error recording check #214 which was written for $450 but recorded for $540. 5. Collection of note and interest by bank on company's behalf.
The following reconciling items are applicable to the bank reconciliation for Ellington Company. Indicate which items will require a journal entry. a. b. C. d. e. f. Outstanding cheques. Bank debit memorandum for service charge. EFT payment made by a customer. Deposits in transit. Company error in recording a cheque made ut for $880 as $808. A bank error in clearing a cheque against Ellington Company's bank account, when the cheque was written by Wellington Company. 100
Indicate whether each item should be added to or deducted from the book or bank balance and whether it should or should not appear on the September 30 reconciliation. For items that add or deduct from the book balance column, place a Dr. or Cr. after the “Add” or “Deduct” to show the accounting impact on Cash. 1. NSF check from a customer is shown on the bank statement but not yet recorded by the company. 2. Interest earned on the September cash balance in the bank is not yet recorded by the company. 3. Deposit made on September 5 and processed by the bank on September 6. 4. Checks written by another depositor but mistakenly charged against this company’s account. 5. Bank service charge for September is not yet recorded by the company. 6. Checks outstanding on August 31 that cleared the bank in September. 7. Check written against the company’s account and cleared by the bank; erroneously not recorded by the company’s recordkeeper. 8. A note receivable is collected by the bank for the…
While preparing the February 28 bank reconciliation, the accountant identifies the following items: company’s balance according to the general ledger, $23,100; outstanding cheques, $550; interest earned on the chequing account, $100; a customer’s NSF cheque returned by the bank, $1,000. While preparing the reconciliation, the accountant discovers an error in recording a customer’s cheque; the amount has been incorrectly recorded on the books as a cash receipt of $600, while the bank correctly has recorded the amount as $650. What is the company’s adjusted cash balance on February 28? $22,250 $22,200 $22,150 $21,700
A table for a monthly bank reconciliation dated September 30 is given below. For each item 1 through 12, indicate whether the item should be added to or subtracted from the book or bank balance, and whether it should or should not appear on the reconciliation. (Select the answers in the appropriate cells. Leave no cells blank. Be certain to select "NA" in fields which are not applicable.) Debit or Shown or Not Item Bank Balance Book Balance Credit to Cash Shown on Account Reconciliation 1. NSF check from a customer is shown on the bank statement but not yet recorded by the company. NA Subtract Cr. Shown 2. Checks written by another depositor but mistakenly charged against this company's account. 3. Outstanding checks to suppliers existed at the end of September. 4. Check written against the company's account and cleared by the bank erroneously not recorded by the company's recordkeeper. 5. Bank service charge for September is not yet recorded by the company. 6. The company made a…
Int A table for a monthly bank reconciliation dated September 30 is given below. For each item 1 through 12, indicate whether the item should be added to or subtracted from the book or bank balance, and whether it should or should not appear on the reconciliation. (Select the answers in the appropriate cells. Leave no cells blank. Be certain to select "NA" in fields which are not applicable.) Debit or Item Bank Balance Book Balance Credit to Cash Account 1. Checks written by another depositor but mistakenly charged against this company's account. 2: Outstanding checks to suppliers existed at the end of September 3. Bank service charge 4. Check written against the company's account and cleared by the bank erroneously not recorded by the company's recordkeeper. 5. The company made a month-end accrual for wages eamed but not yet paid. 6 Deposits in transit as of September 30 were not recorded by the bank unts October 3, 7. The company had outstanding checks to employees on September 30.…
Coasters Co. issued a note receivable to a customer. The customer made payment directly to the Coaster’s bank. The payment appeared on the month-end bank statement. How would this payment be adjusted in the bank reconciliation? Add to company records (book side) Subtract from company records (book side) Subtract from bank statement (bank side) Add to bank statement (bank side)
identify each of the following reconciling items as: an addition to the cash balance according to the bank statement a deduction from the cash balance according to the bank statement an addition to the cash balance according to the company's records a deduction from the cash balance according to the company's records (None of the transactions reported by bank debit and credit memos have been recorded by the company.) Item Treatment 1. Bank service charges, $50. 2. Check of a customer returned by bank to company because of insufficient funds, $520. 3. Check for $345 incorrectly recorded by the company as $435. 4. Check for $200 incorrectly charged by bank as $2,000.
Which of the following items will not appear on the Books side of the reconciliation? A a non-sufficient funds check of $75 was returned to the bank and deduct it from the bank balance. Be a deposit was in transit in not yet deposited in the bank. See the bank charge a service fee of $20 on the bank statement. D the bank collected in notes receivable of $1000 for the business