Rush Corporation borrowed $25,000 from the bank. Whichof the following accurately shows the effects of thetransaction?a. Increase cash by $25,000 and decrease notes payable by$25,000.b. Increase cash by $25,000 and increase notes payable by$25,000.c. Decrease cash by $25,000 and decrease notes payable by$25,000.d. Decrease cash by $25,000 and increase notes payable by$25,000.

The correct answer is:b. Increase cash by $25,000 and increase notes payable by $25,000.…

Answered: Rush Corporation borrowed $25,000 from…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter5: Internal Control And Cash

Section: Chapter Questions

Problem 2SEQ

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Suppose a bank receives a deposit of... Provide answer the financial accounting
In a bank reconciliation, to adjust for the bank's deducting $980 for a company check that you wrote and booked for $890 requires A. increasing the book balance by $90 B. reducing the book balance by $90 C. increasing the bank balance by 590 D. reducing the bank balance by $90
The bank statement on 31 October 20X7 showed an overdraft of $800. On reconciling the bank statement, it was discovered that a cheque drawn by your company for $80 had not been presented for payment, and that a cheque for $130 from a customer had been dishonoured on 30 October 20X7, but that this had not yet been notified to you by the bank. What is the correct bank balance to be shown in the statement of financial position at 31 October 20X7? A $1,010 overdrawn B $880 overdrawn C $750 overdrawn D $720 overdrawn
ROK Company has a material bank overdraft of $2,000 in ABC Bank and $95,000 in XYZ bank. The bank overdraft in ABC bank should be: O reported as a deduction from the current asset section O reported as a deduction from cash. Onetted against cash and a net cash amount reported. O reported as a current liability.
Raven Corp has a checking account balance of $150,000, a bank overdraft of $40,000 on a different bank account at a different bank, petty cash of $1,000, post-dated checks received totaling $10,000, and a certificate of deposit (that matures in four months) for $200,000. How much should be reported as cash in the balance sheet? a. $111,000 b. $121,000 c. $151,000 d. $321,000
How much interest did the bank collect for the company ?
. A company's bank statement shows a balance of $10,000, while its cash account in the company's records indicates a balance of $9,500. Upon further analysis, the following discrepancies are identified: Outstanding checks total $1,200. • The bank erroneously recorded a deposit of $500 as $50. • The company recorded a check for $800 as $80. • The bank charged a service fee of $25. Calculate the adjusted cash balance after reconciling these discrepancies. Remember to subtract any outstanding checks and bank errors, and add any unrecorded deposits or adjustments to the cash balance to arrive at the adjusted cash balance.
Horton Corporation is preparing a bank reconciliation and has identified the following potential reconciling items. For each item, indicate if it is (1) added to balance per bank statement, (2) deducted from balance per bank statement, (3) added to balance per books, or (4) deducted from balance per books. a.Deposit in transit $5,500. b.Bank service charges $25. c.Interest credited to Horton's account $31. d.Outstanding checks $7,422. e.NSF check returned $377 Use the information above for Horton Corporation. Prepare any entries necessary to make Horton's accounting records correct and complete.
ABC Co. is preparing its October 31, 2020 bank reconciliation. The following information was determined. a. The cash balance per books is P560,000 while cash balance per bank statement is P640,000. b. Credit memo P40,000 c. Debit memo P30,000 d. Deposit in transit P150,000 e. Outstanding checks P50,000 The disbursement per books are overstated by P90,000. g. The bank debits are understated by P80,000. f. Requirements. 1. Prepare bank reconciliation. Bank Reconciliation Statement Balance per books, end Add: Credit memos Bal. per bank statement, end Add: Deposits in transit (DIT) Less: Outstanding checks (OC) Add/Less: Bank errors Less: Debit memos (NSF) Add/Less: Book errors Adjusted balance Adjusted balance 2. List down the nature of error its effect on ending balance of cash and the corrections made. Nature of Error Effect on ending balance of cash Correction (Book or Bank) (Amount credited/ debited) e.g. Cr. P10,000 (Overstated or Understated) 1. 2.
The checking account balance per bank statement is P3,874,000. Included in the bank statement are a bank service charge of P10,000, a note collection by the bank of P400,000 and the return of P100,000 from a matured time deposit. Outstanding checks totaled P490,000 while deposits in transit total P210,000. The depositor incorrectly recorded a cash collection of P82,000 as P28,000. What is the adjusted cash in bank? * A.P3,540,000 B.P3,594,000 C.P3,648,000 D.P4,154,000
Upon review of the most recent bank statement, you discover that a check was made out to your supplier for $76 butwas recorded in your Cash and Accounts Payable accountsas $67. Which of the following describes the actions to betaken when preparing your bank reconciliation?Balance per Bank Balance per Booka. Decrease No changeb. Increase Decreasec. No change Decreased. Decrease Increase

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