Question Details

CHAPTER 8 FRAUD, INTERNAL CONTROL, AND CASH

COMPUTER S 230 CHAPTER 8 PART 8

121.	If a check correctly written and paid by the bank for $427 is incorrectly recorded on the company's books for $472, the appropriate treatment on the bank reconciliation would be to
a.	add $45 to the bank's balance.
b.	add $45 to the book's balance.
c.	deduct $45 from the bank's balance.
d.	deduct $427 from the book's balance.


	122.	Notification by the bank that a deposited customer check was returned NSF requires that the company make the following adjusting entry:
a.	Accounts Receivable
		Cash
b.	Cash
		Accounts Receivable
c.	Miscellaneous Expense
		Accounts Receivable
d.	No adjusting entry is necessary.

123.	Jukebox Company had checks outstanding totaling $10,800 on its June bank reconciliation. In July, Jukebox Company issued checks totaling $77,800. The July bank statement shows that $76,600 in checks cleared the bank in July. A check from one of Jukebox Company's customers in the amount of $1,000 was also returned marked "NSF." The amount of outstanding checks on Jukebox Company's July bank reconciliation should be
a.	$1,200.
b.	$11,000.
c.	$12,000.
d.	$13,000.


124.	Each of the following items affect the cash balance per books except
a.	bank service charges.
b.	notes collected by the bank.
c.	NSF checks.
d.	outstanding checks.


	125.	Electric Sunset Company gathered the following reconciling information in preparing its July bank reconciliation:
Cash balance per books, 7/31	$22,000
Deposits in transit	1,200
Notes receivable and interest collected by bank	4,400
Bank charge for check printing	80
Outstanding checks	8,000
NSF check	680
The adjusted cash balance per books on July 31 is
a.	$17,640.
b.	$18,840.
c.	$25,640.
d.	$26,840.


	126.	Unicycle Company developed the following reconciling information in preparing its September bank reconciliation:
Cash balance per bank, 9/30	$24,000
Note receivable collected by bank	12,000
Outstanding checks	14,000
Deposits in transit	7,000
Bank service charge	150
NSF check	2,400
MC. 	126
Determine the cash balance per books (before adjustments) for Unicycle Company.
a.	$2,450.
b.	$7,550.
c.	$9,550.
d.	$17,000.


	127.	Bank errors
a.	occur because of time lags.
b.	must be corrected by debits.
c.	are infrequent in occurrence.
d.	are corrected by making an adjusting entry on the depositor's books.


128.	An adjusting entry is not required for
a.	outstanding checks.
b.	collection of a note by the bank.
c.	NSF checks.
d.	bank service charges.


	129.	Winter Gloves Company had checks outstanding totaling $12,800 on its May bank reconciliation. In June, Winter Gloves Company issued checks totaling $79,800. The July bank statement shows that $71,400 in checks cleared the bank in July. A check from one of Winter Gloves Company's customers in the amount of $2,000 was also returned marked "NSF." The amount of outstanding checks on Winter Gloves Company's July bank reconciliation should be
a.	$8,400.
b.	$19,200.
c.	$21,200.
d.	$23,200.


130.	Candy Claws Company gathered the following reconciling information in preparing its August bank reconciliation:
Cash balance per books, 8/31	$19,500
Deposits in transit	900
Notes receivable and interest collected by bank	4,800
Bank charge for check printing	120
Outstanding checks	12,000
NSF check	1,020
The adjusted cash balance per books on August 31 is
a.	$11,160.
b.	$12,060.
MC. 	126
c.	$23,160.
d.	$24,060.


131.	Shane Company gathered the following reconciling information in preparing its April bank reconciliation:
Cash balance per books, 4/30	$19,800
Deposits in transit	2,700
Notes receivable and interest collected by bank	6,600
Bank charge for check printing	150
Outstanding checks	13,500
NSF check	1,260
The adjusted cash balance per books on April 30 is
a.	$12,930.
b.	$14,190.
c.	$23,730.
d.	$24,990.


	132.	Bacher Company developed the following reconciling information in preparing its September bank reconciliation:
Cash balance per bank, 9/30	$6,160
Note receivable collected by bank	3,360
Outstanding checks	3,200
Deposits in transit	2,520
Bank service charge	42
NSF check	672
Using the above information, determine the cash balance per books (before adjustments) for the Jeter Company.
a.	$2,834
b.	$5,480
c.	$8,148
d.	$8,828


	
 
133.	In the month of November, Kinsey Company Inc. wrote checks in the amount of $18,500.  In December, checks in the amount of $25,316 were written. In November, $16,936 of these checks were presented to the bank for payment, and $21,766 were presented in December. What is the amount of outstanding checks at the end of November?
a.	$1,564
b.	$4,830
c.	$5,114
d.	$6,816


134.	In the month of November, Kinsey Company Inc. wrote checks in the amount of $27,750. In December, checks in the amount of $37,974 were written. In November, $25,404 of these checks were presented to the bank for payment, and $32,649 were presented in December. What is the amount of outstanding checks at the end of December?
a.	$2,346
b.	$7,245
c.	$7,671
d.	$10,224


135.	At April 30, Yaddof Company has the following bank information:  cash balance per bank $2,300; outstanding checks $390; deposits in transit $275; credit memo for interest $50; bank service charge $10. What is Mareska- adjusted cash balance on April 30?
a.	$2,185
b.	$2,245
c.	$2,300
d.	$2,340


136.	At June 30, Yaddof Company has the following bank information:  cash balance per bank $1,800; outstanding checks $340; deposits in transit $275; credit memo for interest $75; bank service charge $10. What is Mareska- adjusted cash balance on June 30?
a.	$1,735
b.	$1,800
c.	$1,810
d.	$1,865

 
137.	Hoppmann Company wrote checks totaling $25,620 during October and $27,975 during November. $24,360 of these checks cleared the bank in October, and $27,330 cleared the bank in November. What was the amount of outstanding checks on November 30?
a.	$645
b.	$1,260
c.	$1,905
d.	$2,355


138.	Fitzgerald Company wrote checks totaling $34,160 during October and $37,300 during November. $32,480 of these checks cleared the bank in October, and $36,440 cleared the bank in November. What was the amount of outstanding checks on November 30?
a.	$2,860
b.	$1,680
c.	$2,540
d.	$3,140


139.	Carothers Company assembled the following information in completing its March bank reconciliation: balance per bank $7,640; outstanding checks $1,550; deposits in transit $2,500; NSF check $160; bank service charge $50; cash balance per books $8,800. As a result of this reconciliation, Carothers will
a.	reduce its cash account by $50.
b.	reduce its cash account by $210.
c.	reduce its cash account by $950.
d.	increase its cash account by $110.


	140.	Macrinez Company assembled the following information in completing its July bank reconciliation: balance per bank $22,920; outstanding checks $4,650; deposits in transit $7,500; NSF check $480; bank service charge $150; cash balance per books $26,400. As a result of this reconciliation, Macrinez will
a.	reduce its cash account by $150.
b.	reduce its cash account by $630.
c.	reduce its cash account by $2,850.
d.	increase its cash account by $330.