PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN: 9781337117005
Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher: Cengage Learning
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Question
Chapter 4, Problem 4FPE
a.
Summary Introduction
To discuss: The money an individual may lose if reported the day it was stolen.
A checking account is an assortment of deposit accounts held by a bank or credit association that enables a customer to deposit as well as withdraw funds on a typical premise.
b.
Summary Introduction
To discuss: The money an individual may lose if reported 6 days after the theft.
c.
Summary Introduction
To discuss: The money an individual may lose if reported 65 days after receiving the periodic statement.
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Chapter 4 Solutions
PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
Ch. 4 - Prob. 1LOCh. 4 - Describe todays financial services marketplace,...Ch. 4 - Prob. 3LOCh. 4 - Prob. 4LOCh. 4 - Prob. 5LOCh. 4 - Develop a cash management strategy that...Ch. 4 - Adapting to a low-interest-rate environment. A...Ch. 4 - Prob. 2FPECh. 4 - Choosing a new bank. Youre getting married and...Ch. 4 - Prob. 4FPE
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- Helen was a very forgetful person, so she had placed her bank code (PIN number) on the back of her debit card. A thief stole Helen’s card and was able to take $100 from an ATM on the day of the theft. That same day, Helen realized that the card was gone and phoned her bank. The following morning, the thief withdrew another $100. For how much, if anything, is Helen responsible? Why?arrow_forwardIdentity Theft Resource Center (ITRC) provides consumer and victim support, public education, and advice. Marlena's grandmother is concerned her identity has been stolen. Help Marlena reconcile her grandmother's checkbook and bank statement. The checkbook reflects a balance of $1,245. The bank statement shows a balance of $207. Notes collected were $100 and $210. The bank charged a $25 service fee. Outstanding checks were Number 255, $985; Number 261, $233; and Number 262, $105. There is a deposit in transit of $2,646. Prepare your bank reconciliation.arrow_forwardIdentity Theft Resource Center (ITRC) provides consumer and victim support, public education, and advice. Marlena's grandmother is concerned her identity has been stolen. Help Marlena reconcile her grandmother's checkbook and bank statement. The checkbook reflects a balance of $1,425. The bank statement shows a balance of $363. Notes collected were $220 and $330. The bank charged a $85 service fee. Outstanding checks were No. 255, $1,165; No. 261, $437; and No. 262, $705. There is a deposit in transit of $3,834. Prepare your bank reconciliation. Checkbook balance Add: Notes collected Subtotal Deduct: Service fee Reconciled balance $ $ GA BANK RECONCILIATION 1,440 570 2,010.00 90 $ $ $ 376 3,933 4,309 1,920arrow_forward
- 6. Austin's bank has a $45 overdraft fee. On Friday morning Austin had $345.78 in his checking account. Friday night a payment to AT&T was automatically withdrawn from his account in the amount of $210.15. Over the weekend Austin withdrew $100 cash and made purchases with his debit card in the amounts of $65.34, $24.99, $6.75 and $42.87. What was Austin's balance on Monday morning? ASUSarrow_forwardPlease refer to the information provided and answer the following questions above. Please have mercy on me. Help me I badly need this ASAP. 1. How much is the deposit found in the bank that is notseen in the book transactions for July? 2. How much is the total amount of check that is found in the bank that is not seen in the book transactions for July? Do not include bank errors. 3. How much is the total amount of check found in the bookthat is not yet reflected in the bank? 4. How much is the deposit found in the book that has not reflectedin the bank? 5. What is the journal entry for the bank error of P11,000? 6. What is the journal entry for the credit memo of P150,000? 7. What is the journal entry for the debit memo of P2,500? 8. What is the journal entry for the NSF check of P21,000?arrow_forwardIdentity Theft Resource Center (ITRC) provides consumer and victim support, public education, and advice. Marlena's grandmother is concerned her identity has been stolen. Help Marlena reconcile her grandmother's checkbook and bank statement. The checkbook reflects a balance of $1,440. The bank statement shows a balance of $376. Notes collected were $230 and $340. The bank charged a $90 service fee. Outstanding checks were Number 255, $1,180; Number 261, $454; and Number 262, $755. There is a deposit in transit of $3,933. Prepare your bank reconciliation. Checkbook balance Add: Subtotal Deduct Reconciled balance BANK RECONCILIATION Bank balance Add: Subtotal Deduct: Reconciled balancearrow_forward
- To prevent embezzlement, what can you do to protect your operation against it? a) Make bank deposits daily. b) Ensure that the individual that makes daily deposits is bonded. c) Review and approve bank statement reconciliations each month. d) All of the above e) Only a. and b. abovearrow_forwardTrue or False. 5. Deposits in transit refer to collections received on the last day of the month which are deposited the first working day of the following month.6. Deposit in transit is a reconciling item which requires an adjusting entry in the books of the depositor.7. Bank service charge is an example of an unrecorded bank credit.8. Bank reconciliation is prepared once a year at the end of the accounting period.9. An NSF check is a reconciling item that does not require an adjusting entry in the books of the depositor.10. Adjusting journal entries are prepared based on the reconciling items on the bank side of the bank reconciliation.11. A bank statement is prepared by the depositor to reconcile the difference between his records and bank records.12. A bank statement is a letter issued by the bank that certifies the existence of the bank account.13. Deposit in transit is a reconciling item added to the unadjusted book balance.14. Outstanding check is a reconciling item deducted…arrow_forwardSuppose you incorrectly recorded a deposit as $450. The bank discovered the correct amount was $480. The bank will send a debit memo to inform you of the error. (True or False)arrow_forward
- 9. When preparing a check and you commit an error, what should you do? a. Get a pencil eraser and erase the error. b. Get a white ink pen and erase the error. 6. c. Cancel the check and prepare a new one. d. Call an ambulance. 10. It is a report issued by a bank (on a monthly basis) which shows the deposits and withdrawals during the period and the cumulative balance of a depositor's bank account. a. Credit card billing statement b. ATM card c. Bank statement d. T- accountarrow_forwarda. Illustrate and record the following events on a T account John deposits his $10,000 paycheck into his checking account at Chase Bank b.Chase Bank deposits the check at the Fed and Fed collects the funds for Chase Bank c.What happens to a bank's reserves when it receives a deposit? d.John withdraws $2000 cash and pays his rent. His landlord deposits the $2000 in Citi Bankarrow_forwardYour checkbook balance shows $706.50arrow_forward
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