Answered: If a check correctly written and paid…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

If a check correctly written and paid by the bank for $649 is incorrectly recorded on the company's books for $694, the appropriate treatment on the bank reconciliation would be to

add $45 to the book's balance.

subtract $45 from the book's balance.

deduct $45 from the bank's balance.

deduct $649 from the book's balance.

A check written by the company for $129 is incorrectly recorded by a company as $192. On the bank reconciliation, the $63 error should be

added to the balance per books.

deducted from the balance per books.

added to the balance per bank.

deducted from the balance per bank.

Pharoah Company had checks outstanding totaling $40200 on its June bank reconciliation. In July, Pharoah Company issued checks totaling $289400. The July bank statement shows that $195700 in checks cleared the bank in July. A check from one of Pharoah Company's customers in the amount of $2200 was also returned marked "NSF." The amount of outstanding checks on Pharoah Company's July bank reconciliation should be

$93700.

$133900.

$131700.

$53500.

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