13. While preparing the bank reconciliation Cristiano Ronaldo discovered that the bank had incorrectly paid cheque number 101489 for $500 more than the amount written on the cheque by the company. The bank account has a positive balance. The proper procedure to correct this bank error is to:

Select one:

a.add the error to the bank statement balance in the reconciliation and notify the bank.

b.add the error to the bank balance in the general ledger.

c.deduct the error from the bank statement balance in the reconciliation.

d.deduct the error from the bank balance in the general ledger and notify the bank.

14.When preparing the bank reconciliation, Novak Djokovic found on the bank statement that $27 interest was charged by the bank. The proper procedure is to:

Select one:

a.Deduct $27 from the general ledger bank balance.

b.Add $27 to the bank statement balance in the reconciliation.

c.Deduct $27 from the bank statement balance in the reconciliation.

d. Add $27 to the general ledger bank balance.

15.Enron Ltd received its monthly bank statement showing a balance of $45 888 Cr at 30 June. On this date cash received from debtors and not yet deposited at the bank totalled $7913 and outstanding cheques were $4217. The amount to appear as cash at bank on the 30 June balance sheet is:

Select one:

a.$49 584

b.$42 192

c.$58 018

d. $45 888

16. Cristiano Ronaldo is preparing the bank reconciliation of Apple Company. The deposit column of Apple Companysbank statement shows a direct credit of $444. Assuming the account is not in overdraft, when reconciling the bank account, this amount will be:

Select one:

a.deducted from the bank statement balance in the reconciliation.

b.added to the bank statement balance in the reconciliation.

c.added to the general ledger bank balance.

d.deducted from the general ledger bank balance.

19. JB Hi Fi sold 30 modems for $60 on 30 June. At that date, the stock card for the modems sold had a total of 50 modems on hand at an average cost of $35.50 each. Assume the weighted average method of costing is used. What is the cost of the modems recognised in the income statement?

a.$1 775

b.$1 065

c.$1 800

d.$1 200

8. Jennifer Aniston is the new accounting intern at your company, and she is uncertain about the meaning of bad debts recovered. Advise Jennifer which statement is true in relation to bad debts recovered?

Select one:

A) The accounts receivable should be re-established to maintain a complete history of the customer's activity and restore their credit rating.

B) The entry to reinstate the accounts receivable is DR Accounts receivable and CR Bad debts recovered.

C) Both A) and B) are true.

D) Only B) is true.

9.

Brad Pitt uses the allowance method of accounting for bad and doubtful debts. When he received notice that a debtor, who owed him $2 222, was in liquidation he decided to write off the debt as bad. What is the general journal entry to record the write off?

Select one:

a. DR Allowance for doubtful debts $2222; CR Accounts receivable $2222

b. DR Bad debts expense $2222; CR Accounts receivable $2222

c. DR Bad debts expense $2222; CR Allowance for doubtful debts $2222

d. DR Allowance for doubtful debts $2222; CR Bad debts expense $2222