FUND. OF FINANCIAL ACCT. (LL) W/CONNECT
6th Edition
ISBN: 9781260725254
Author: PHILLIPS
Publisher: MCG
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Chapter 5, Problem 9MC
To determine
To find: The correct option, the action which describes about the check that was recorded as underpaid, while bank reconciliation
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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
Upon review of your company’s bank statement, you discover that you recently deposited a check from a customerthat was rejected by your bank as NSF. Which of the following describes the actions to be taken when preparingyour company’s bank reconciliation?Balance per Bank Balance per Booka. Decrease No changeb. Increase Decreasec. No change Decreased. Decrease Increase
Indicate what effect each situation will have on the bank reconciliation process. Place the
number of your choice beside the items listed.
1. Add to bank balance
2. Deduct from bank balance
3. Add to checkbook balance
4. Deduct from checkbook balance
a. deposit in transit
b. bank service charge
c. NSF check
d. Check written for $95 recorded on the company's ledger as $59
e. Outstanding checks
f. Check written for $80 recorded as $800
g. Check printing charges
h. Interest earned on checking account
Chapter 5 Solutions
FUND. OF FINANCIAL ACCT. (LL) W/CONNECT
Ch. 5 - Prob. 1QCh. 5 - Prob. 2QCh. 5 - Prob. 3QCh. 5 - Prob. 4QCh. 5 - Prob. 5QCh. 5 - What aspect(s) of the Sarbanes-Oxley Act might...Ch. 5 - Prob. 7QCh. 5 - What are the five components of an internal...Ch. 5 - Prob. 9QCh. 5 - Why is it a good idea to assign each task to only...
Ch. 5 - Prob. 11QCh. 5 - Prob. 12QCh. 5 - Prob. 13QCh. 5 - Prob. 14QCh. 5 - Prob. 15QCh. 5 - Prob. 16QCh. 5 - What is the primary internal control goal for cash...Ch. 5 - Prob. 18QCh. 5 - Prob. 19QCh. 5 - Prob. 20QCh. 5 - Prob. 21QCh. 5 - Prob. 22QCh. 5 - Prob. 23QCh. 5 - Prob. 24QCh. 5 - Prob. 1MCCh. 5 - Prob. 2MCCh. 5 - Prob. 3MCCh. 5 - Prob. 4MCCh. 5 - Which of the following internal control principles...Ch. 5 - Prob. 6MCCh. 5 - Prob. 7MCCh. 5 - Prob. 8MCCh. 5 - Prob. 9MCCh. 5 - Prob. 10MCCh. 5 - Prob. 1MECh. 5 - Prob. 2MECh. 5 - Prob. 3MECh. 5 - Prob. 4MECh. 5 - Prob. 5MECh. 5 - Prob. 6MECh. 5 - Prob. 7MECh. 5 - Prob. 8MECh. 5 - Prob. 9MECh. 5 - Prob. 10MECh. 5 - Prob. 11MECh. 5 - Prob. 12MECh. 5 - Prob. 13MECh. 5 - Prob. 14MECh. 5 - Prob. 15MECh. 5 - Prob. 16MECh. 5 - Identifying Internal Control Principle and...Ch. 5 - Prob. 2ECh. 5 - Prob. 3ECh. 5 - Prob. 4ECh. 5 - Prob. 5ECh. 5 - Prob. 6ECh. 5 - Reporting Cash, Cash Equivalents, and Restricted...Ch. 5 - Prob. 8ECh. 5 - Prob. 9ECh. 5 - Prob. 10ECh. 5 - Prob. 1CPCh. 5 - Prob. 2CPCh. 5 - Prob. 3CPCh. 5 - Prob. 4CPCh. 5 - Prob. 1PACh. 5 - Prob. 2PACh. 5 - Prob. 3PACh. 5 - Prob. 4PACh. 5 - Prob. 1PBCh. 5 - Prob. 2PBCh. 5 - Prob. 3PBCh. 5 - Prob. 4PBCh. 5 - Recording Transactions and Adjustments,...Ch. 5 - Finding Financial Information Refer to the...Ch. 5 - Comparing Financial Information Refer to the...Ch. 5 - Ethical Decision Making: A Real-Life Example When...Ch. 5 - Ethical Decision Making: A Mini-Case You are an...Ch. 5 - Accounting for Cash Receipts, Purchases, and Cash...
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- 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 bankarrow_forwardThe 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?arrow_forwardThe bank reconciliation shows the following adjustments: Deposits in transit: $852 Notes receivable collected by bank: $1,000; interest: $20 Outstanding checks: $569 Error by bank: $300 Bank charges: $30 Prepare the correcting journal entry.arrow_forward
- Using the following information, prepare a bank reconciliation. Bank balance: $6,988 Book balance: $6,626 Deposits in transit: $1,600 Outstanding checks: $599 and $1,423 Bank charges: $75 Bank incorrectly charged the account $75. The bank will correct the error next month. Check number 2456 correctly cleared the bank in the amount of $234 but posted in the accounting records as $324. This check was expensed to Utilities Expense.arrow_forwardWhich of the following are found on the bank side of the bank reconciliation? A. NSF check B. interest income C. wire transfer into clients account D. deposit in transitarrow_forwardBased on the following information, prepare a bank reconciliation to determine the adjusted (corrected) balance: (Input each amount as a positive value.) Bank balance Checkbook balance Outstanding checks Direct deposits Bank balance Add: Less: $702 Account fees $ 662 ATM withdrawals $120 Deposit in transit $72 Interest earned Bank Statement Adjusted bank statement balance Checkbook balance Add: Less: $ 12 $ 88 $ 60 $8 Your Checkbook Adjusted checkbook balancearrow_forward
- please answer in detailarrow_forwardBank reconciliations are typically prepared for... A. Savings Accounts B. Current Accounts C. Time Deposits D.Credit Accounts The cash ledger showed a balance of P2M, while the bank statement showed a balance of P800,000. What item must be reconciled to balance the cash ledger and bank statement? A. P1.2M deposit in transitB. P1.2M outstanding check C. P1.2M book error D. P1.2M debit memo Which of the following is not a bank reconciling items? A. Deposit in Transit B. Credit Memo C. Bank Error D. Outstanding Checksarrow_forwardIdentify where each of the following transactions would be found on the bank reconciliation. Decrease book side Would not be found Decrease Increase Increase Decrease Increase bank Decrease both Increase on a bank reconciliation bank side side and book side bank side and increase book both bank bank side bank side and side and decrease book side side book side book side 1. Outstanding check 2. Interest income 3. NSF check 4. Wire transfer by customer 5. Credit sale to customer 6. Bank charges 7. Overcharge by Bank (Error) 8. Depreciation on equipment 9. Deposit in transit 10. Automatic loan paymentarrow_forward
- Identify where each of the following transactions would be found on the bank reconciliation. -Choose 1 for your answer: Increase both bank side and book side Increase Bank Side Decrease both bank side and book side Increase Book Side Would not be found on a bank reconciliation Increase bank side and decrease book side Decrease Book Side Decrease bank side and increase book side Decrease Bank Side Accounts Receivable Clerk recorded a check cleared by the bank for $215 as $125. Bank recorded deposit for $1,234 as $1,324. Accounts Payable Clerk recorded a check cleared by the bank for $583 as $538. Bank processed in error a customer check twice. Automatic Loan Payment Wire transfer by customer Interest income Bank charges Overcharge by Bank (Error)arrow_forwardplease provide coreect answer with full explanationarrow_forwardmultiple choice quetion a.When preparing a bank reconciliation statement and the closing bank statement balance is an overdraft, we begin with the balance in the bank statement and then: add unpresented cheques and deduct outstanding receipts. add outstanding receipts and deduct unpresented cheques. add all receipts and deduct all payments. 4.add all payments and deduct all receiptsarrow_forward
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