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
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.
How much interest did the bank collect for the company ?
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.
1 . Prepare a bank reconciliation given the following information the bank statement shows a balance of $4300 while the general ledger shows a balance of $ 2,900. the deposits outstanding ( in transit) are $2,900. the checks outstanding are $ 550. bank service charge is $50. note receivable collected by the bank is $3,600. interest earned for the month is $ 200.
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
Assume that a bank receives a deposit of $1,000 in cash, puts aside $200 as required reserves, and makes a loan of $800, these transactions imply that: the money multiplier is 10. the money multiplier is 5. the money multiplier is 4. the money multiplier is 2. the money multiplier is 2.
1. A company makes a sale to a customer on credit and borrows cash (70-90% of the amount of sales) from a bank using receivables as security. When the company receives the customer payment, it sends this money to the lender. This transaction is an example of what? Factoring with recourse Securitization Collateralized borrowing Nonrecourse factoring 2. Which of the following statements about the direct and indirect methods for presenting Cash Flow Statement is NOT true? According to the indirect method, cash flows begin with net income or loss and is followed by subsequent additions to or deductions from that amount for non-cash revenue and expense items, resulting in cash flow from operating activities. The direct method is based on use of actual cash inflows and outflows from a company’s operations. Using direct and indirect methods leads to different amounts shown as cash flow from operations, investing, and financing activities.…

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