Question
7. If a bank reconciliation is done correctly, the adjusted bank balance and the adjusted book balance will? A. Be the same amount B. The
7. If a bank reconciliation is done correctly, the adjusted bank balance and the adjusted book balance will?
| A. Be the same amount | |
| B. The adjusted bank balance will always be more than the adjusted book balance | |
| C. The adjusted bank balance will always be less than adjusted book balance | |
| D. The adjusted bank balance is never the same as the adjusted book balance | |
| E. None of the above |
8. In a bank reconciliation, if the bank service charge is 600, what is the journal entry to record the bank service charge expense?
| A. Dr. Cash 600 Cr. Bank Expense 600 | |
| B. Dr. Bank Expense 600 Cr. Cash 600 | |
| C. Dr. Interest Revenue 600 Cr. Cash 600 | |
| D. Dr. Cash 600 Cr. Interest Revenue 600 | |
| E. None of the above |
9. For the year ended December 31, 2020, Company B earned net credit sales of $600,000. Industry experience suggests that bad debts will amount to 5% of net credit sales. How much is the bad debts expense for 2019?
| A. 600,000 | |
| B. 60,000 | |
| C. 30,000 | |
| D. 6,000 | |
| E. None of the above |
10. what is the journal entry to record a 1200 EFT collection on account?
| A. Dr. Accounts Receivable 1200 Cr. Cash 1200 | ||
| B. Dr. Cash 1200 Cr. Accounts Receivable 1200 | ||
| C. Dr. Accounts Payable 1200 Cr. Accounts Receivable 1200 | ||
| D. Dr. Accounts Payable 1200 Cr. Cash 1200 | ||
| E. None of the above | ||
11. In a bank reconciliation if the outstanding checks are 15,000, what is the journal entry to record the outstanding checks?
| A. Dr. Outstanding Checks 15,000 Cr. Cash 15,000 | |
| B. No Entry | |
| C. Dr. Outstanding Checks 15,000 Cr. Deposit in Transit 15,000 | |
| D. Dr. Deposit in Transit 15,000 Cr. Outstanding Checks 15,000 | |
| E. None of the above |
12. What is the adjusting journal entry to record the accrual of $100 of interest income on a note receivable?
| A. Dr. Interest Receivable 100 Cr. Note Receivable 100 | |
| B. Dr. Interest Revenue 100 Cr. Interest Receivable 100 | |
| C. Dr. Cash 100 Cr. Interest Payable 100 | |
| D. Dr. Cash 100 Cr. Interest Expense 100 | |
| E. None of the above |
13. In a bank reconciliation, the amount for the deposit in transit is?
| A. Added in the bank part of the reconciliation | |
| B. Subtracted in the bank part of the reconciliation | |
| C. Added in the book part of the reconciliation | |
| D. Subtracted in the book part of the reconciliation | |
| E. None of the above |
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