Question
At the end of the month of July you close the books of your company and received the bank statement. You are ready to start
At the end of the month of July you close the books of your company and received the bank statement. You are ready to start with the Adjusting journal entries and realized that a bank reconciliation must be performed.
First you collect the data from June 30th reconciliation as follows:
| Balance per Bank | $ | 10,000 | |
| add: Deposits in Transit | $ | 6,300 | |
| deduct: Outstanding Cheques | $ | (5,000 | ) |
| Balance per Books | $ | 9,600 | |
Second you close your update your Cash and bank account with all transactions recorded before AJE and you have:
| Balance July 31 | $ | 11,000 |
| Deposits | $ | 8,500 |
| Cheques | $ | 6,500 |
Third you look at the bank statement provided by your bank and you see the following:
| Balance July 31 | $ | 10,280 |
| Deposits | $ | 13,000 |
| Cheques | $ | 10,000 |
| Note collected | $ | 700 |
| Bank service charge | $ | 50 |
| NSF cheque | $ | 1,000 |
| Interest received | $ | 180 |
| Autowithdrawals | $ | 250 |
What is the amount of deposits made and cashed in July (including deposits in transit from June)?
Multiple Choice
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$13,000
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None of the other alternatives are correct
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$6,700
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$6,300
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$8,500
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Fundamental accounting principle
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
21st edition
1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587
