Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6. Prepare a bank reconciliation (on scrap paper) using the following information: a. December 31 balance per bank statement, $250 b. December 31 balance per

6. Prepare a bank reconciliation (on scrap paper) using the following information:

a. December 31 balance per bank statement, $250

b. December 31 balance per ledger account, $750

c. Checks outstanding totaled $500

d. Deposit in transit to the bank totaled $750

e. The bank collected $250 on a note receivable that the company was not aware of. f. The bank returned a $500 check marked NSF from I. M. Broke, one of the companys customers; the bank also reduced the account by $500.

The correct balance of cash on December 31 is:

a. $1,000

b. $750

c. $500

d. $250

e. none of the above

7. The journal entry for the above bank reconciliation would be:

a. Cash 250 Notes Receivable 250 Accounts Receivable I. M. Broke 500

b. Deposit in transit 750 Outstanding checks 500 Cash 250

c. Cash 250 Outstanding checks 500 Deposit in transit 750

d. Accounts Receivable I. M. Broke 500 Notes Receivable 250 Cash 250

e. none of the above

8. On December 31, the petty cash drawer contained the following: Petty cash vouchers for postage $ 25.00 Petty cash vouchers for entertainment 50.00 Cash (coins and currency) 25.00 Total $100.00 The journal entry to replenish the petty cash fund would be:

a. Petty cash 75 Cash 75

b. Petty cash 100 Cash 100

c. Postage Expense 25 Entertainment Expense 50 Petty cash 25 Cash

d. Postage Expense 25 Entertainment Expense 50 Cash 75

e. none of the above

The following information is available to answer questions 9 and 10: A $2,000 90-day, 6% note is dated July 11.

9. The due date of the note is:

a. Oct. 11

b. Oct. 10

c. Oct. 9

d. Oct. 8

e. Oct. 7

10. Assuming a 360-day year, the maturity value of the note is

a. $2,070.00

b. $2,054.44

c. $2,030.00

e. $2,000.00

d. $2,006.67

e. $2,000.00 11.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, George Foster, Srikant M. Datar

9th Edition

0306457229, 978-0306457227

More Books

Students also viewed these Accounting questions