6. McWarfield Company needs to reconcile the bank and book balance to correct cash balance. A review of the deposit slips with the bank statement showed that a deposit for $1,500 of a different company with a similar account number had been credited to the McWarfield Company account in error, by the bank. Which one of the following is a correct statement? a. Bank adds this amount as bank error. b. Company adds this amount to its boks as bank error. c. Bank deducts this amount as bank error. d. Company deducts this amount as error in recording checks. 7. Melbourne Company needs to reconcile the bank and book balance to correct cash balance as of April 30, 2020. During April, the bank paid an $10,000 note of Melbourne Company plus interest of S120 and charged it to the company's account per instructions received. Melbourne Company had not recorded the payment of note. Which one of the following is a correct statement? a. Company debits cash S10,120; credits notes receivable S10,000 and interest revenue S120. b. Company debits notes receivable S10,000 and interest revenue S120 credits cash $10,120. c. Company debits notes payable $10,000 and interest expense S120; credits cash $10,120. d. Bank adds $10,120 as bank error. Please anwer questions 8, 9 and 10 by using the information given below: Saray Inc. keeps its accounts in TL. The company purchased S 8,000 on October 11, 2019. The foreign currency was kept in the safe of company, March 8, 2020, the company sold S 8,000. The exchange rates are as follows: DOLLAR (S) Date FX Rate October 11, 2019 3.80 TL December 31, 2019 4.50 TL March 8, 2020 6.00 TL (Note: The FX rates are not real for making the calculations easy for you.) 8. Which of the following is a correct statement for the journal entry on October 11, 2019? a. Debits Cash (S) 30,400; credits Cash (TL) 30,400. b. Debits Cash (TL) 30,400; credits Cash (S) 30,400 c. Debits Cash (S) 30,400; credits Gain on Foreign Exchange 30,400. d. Debits Gain on Foreign Exchange 30,400; credits Cash (S) 30,400 9. What of the following is a correct statement for the journal entry on December 31, 2019? a. Debits Cash (S) 5,600; credits Cash (TL) 5,600. b. Debits Cash (TL) 5,600; credits Cash (S) 5,600 c. Debits Cash (S) 5,600; credits Gain on Foreign Exchange 5.600. d. Debits Gain on Foreign Exchange 5,600, credits cash (S) 5,600 10. Which of the following is a correct statement for the journal entry on March 8, 2020? a. Debits Cash (S) 48,000; credits cash (TL) 48,000. b. Debits Cash (TL) 48,000; credits cash (S) 48,000 c. Debits Cash (S) 48,000; credits Gain on Sale Foreign Exchange 12,000 and Cash (TL) 36,000. d. Debits Cash (TL) 48,000; credits Gain on Sale Foreign Exchange 12,000 and Cash (S) 36,000
