16. Owen Company's unadjusted book balance at June 30 is $14,440. The company's bank statement reveals bank service charges of $120. Two credit memos are included in the bank statement: one for $1,490, which represents a collection that the bank made for Owen, and one for $200, which represents the amount of interest that Owen had earned on its interest-bearing account in June. Based on this information, Owen's true cash balance is:

Multiple Choice

$14,440.

$16,010.

$15,730.

$16,250.

17.

At March 31, Cummins Co. had a balance in its cash account of $10,600. At the end of March the company determined that it had outstanding checks of $1,145, deposits in transit of $710, a bank service charge of $40, and an NSF check from a customer for $225. The true cash balance at March 31 is:

Multiple Choice

$10,165

$10,335

$10,600

18. Duke Company's unadjusted bank balance at March 31 is $4,180. The bank reconciliation revealed outstanding checks amounting to $620 and deposits in transit of $460. Based on this information, Duke's true cash balance is:

Multiple Choice

$4,180.

$3,720.

$4,640.

$4,020.

19. On September 30, the bank statement of Fine Company showed a balance of $11,300. The following information was revealed by comparing the bank statement to the cash balance in Fine's accounting records:

(1) deposits in transit amounted to $4,650

(2) outstanding checks amounted to $8,500

(3) a $700 check was incorrectly drawn on Fine's account

(4) NSF checks returned by the bank were $1,100

(5) bank service charge was $39

(6) credit memo for $150 for the collection of one of the company's account receivable

Based on the above information, the true cash balance was:

Multiple Choice

$8,150.

$8,261.

$7,161.

$8,911.

20. Rainey Company's true cash balance at October 31 is $4,040. The following information is available for the bank reconciliation:

Outstanding checks, $650

Deposits in transit, $490

Bank service charges, $100

The bank had collected an account receivable for Rainey Company, $1,100

The bank statement included an NSF check written by one of Rainey's customers for $660

Based on this information Rainey's unadjusted book balance at October 31 is:

Multiple Choice

$4,200.

$4,800.

$3,700.

$3,800.

21. The inventory records for Radford Co. reflected the following

Beginning inventory @ May 1	1,900	units	@	$	5.40
First purchase @ May 7	2,000	units	@	$	5.60
second purchase @ May 17	2,200	units	@	$	5.70
Third purchase @ May 23	1,800	units	@	$	5.80
Sales @ May 31	6,000	units	@	$	7.30

Determine the amount of ending inventory assuming the FIFO cost flow method.

Multiple Choice

$11,010

$11,020

$10,260

$6,760

22. Rosewood Company made a loan of $8,400 to one of the company's employees on April 1, Year 1. The one-year note carried a 6% rate of interest. The amount of interest revenue that Rosewood would report during the years ending December 31, Year 1 and Year 2, respectively, would be:

Multiple Choice

$504 and $0

$0 and $504

$378 and $126

$126 and $378

23. On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $64,000 and $1,400, respectively. During the year Kincaid reported $155,000 of credit sales. Kincaid wrote off $1,250 of receivables as uncollectible in Year 2. Cash collections of receivables amounted to $166,700. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales.

The amount of uncollectible accounts expense recognized in the Year 2 income statement will be:

Multiple Choice

$1,550.

$640.

$1,667.

$1,700.

24. Poole Company purchased two identical inventory items. One of the items, purchased in January, cost $30. The other, purchased in February, cost $37. One of the items was sold in March at a selling price of $90. Assuming that Poole uses a LIFO cost flow, which of the following statements is correct?

Multiple Choice

The balance in ending inventory would be $37.

The amount of gross margin would be $53.

The amount of ending inventory would be $33.50.

The amount of cost of goods sold would be $30.

25. Glasgow Enterprises started the period with 75 units in beginning inventory that cost $2.00 each. During the period, the company purchased inventory items as follows. Glasgow sold 395 units after purchase 3 for $10.20 each.

Purchase	No. of Items			Cost
1		370		$	2.50
2		115		$	2.60
3		60		$	3.00

Glasgow's ending inventory under LIFO would be:

Multiple Choice

$675.

$585.

$525.

$450.