Question
1. A bank statement shows a balance of $6,825 at June 30. The bank reconciliation is prepared and includes outstanding checks of $2,850, deposits in
1. A bank statement shows a balance of $6,825 at June 30. The bank reconciliation is prepared and includes outstanding checks of $2,850, deposits in transit of $1,250, and a bank service charge of $40. Among the paid checks returned by the bank was check number 900 in the amount of $450, which the company had erroneously recorded in the accounting records as $60. The "adjusted cash balance" at June 30 is:
Multiple Choice
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$5,985.
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$5,225.
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$3,525.
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$4,425.
2. The Cash account in the records of Hensley, Incorporated showed a balance of $4,300 at June 30. The bank statement, however, showed a balance of $6,700 at the same date. The only reconciling items consisted of a $750 deposit in transit, a bank service charge of $11, and a large number of outstanding checks.
What is the total amount of the outstanding checks at June 30?
Multiple Choice
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$3,550.
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$3,150.
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$2,778
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$3,161.
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