PLEASE HHELP
Chapter Bank Reconciliation 133 t is prepared to PROBLEMS (a) per record PROBLEM 1: TRUE OR FALSE 1. The bank statement is a report that is prepared for the purpose of bringing the balances of cash per records and per bank nd. statement into agreement. XX 2. When preparing bank reconciliation, credit memos are added XX to the balance per bank statement to get the adjusted balance. (Xx) 3. A bank decreased a depositor's account. To notify the XX depositor, the bank will issue a credit memo. 4. Bank memorandums not recorded by the depositor require xX reconciling entries in the depositor's books of accounts. 5. A bank statement has a balance of P200. If the credit memos s) made by the are P20 while the outstanding checks are P10, the adjusted et recorded by cash balance is P190. k on behalf of 6. The ledger balance of cash is P100. If the credit memos are P20, deposits in transit are P20, outstanding checks are P10, and NSF checks are P5, the adjusted cash balance is P110. made by the 7. In a proof of cash, if the June 30 cash balance is P20 while the t recorded by July cash receipts and disbursements are P10 and P18, ges. respectively, the July 31 cash balance must be P12. but not yet 8. An entity is preparing a proof of cash for November 30 and unt. December 31. If the unadjusted bank statement balance on d released to November 30 is P30, the unadjusted deposits and withdrawals during December are P5 and P3, respectively, the unadjusted bank statement balance on December 31 must be P28. 9. The credit memos from the previous month are extended to the cash receipts column of a proof of cash as an addition. 10. The debit memos from the previous month are extended to the cash disbursements column of a proof of cash as a deduction. PROBLEM 2: MULTIPLE CHOICE - THEORY 1. These are deposits made but not yet credited by the bank to the depositor's bank account. a. Credit memos (CM) c. Outstanding checks (OC) b. Debit memos (DM) d. Deposits in transit (DIT) SHOT ON POCO M3 2021.2.4 12:36Chapter Bank Rec 134 a. 2. In the preparation of bank reconciliation, it was found out th cash sales of P9,500 were incorrectly recorded in the books b. P5,900. What entry is reconciling journal entry? a. (Dr.) Cash; (Cr.) Accounts Receivable C. b. (Dr.) Cash; (Cr.) sales c. (Dr.) Accounts Receivable; (Cr.) Cash d. d. none 3. What is the reconciling entry in the depositor's books to 7. If record outstanding checks? th a. (Dr.) Cash; (Cr.) Accounts Payable b b. (Dr.) Accounts Receivable; (Cr.) Cash a. c. (Dr.) Accounts Payable; (Cr.) Cash d. none b C. 4. In a bank reconciliation, a note receivable collected by the bank is (AICP a. deducted from the cash balance per bank statement. b. deducted from the cash balance per ledger. 8. c. added to the cash balance per bank statement. d. added to the cash balance per ledger. 5. Which of the following reconciliation items requires an adjusting journal entry in the books of ABC Co.? a. Amortization of loan of XYZ, Inc. erroneously credited by the bank to ABC Co.'s account b. NSF check returned by bank and re-deposited by ABC Co. during the period and appropriately cleared the bank in the same period c. Cash deposits made but were not yet credited to ABC Co.'s bank account as of cut-off date d. Customer payments directly remitted to the bank 9 6. Which of the following may be used to compute for the adjusted balance of cash? SHOT ON POCO M3 2021.2.4 12:36Bank Reconciliation 135 as found out I in the books a. Balance per books + Credit memo - Debit memo Understatement of cash collections b. Balance per books + Credit memo - Debit memo + Overstatement of cash collections c. Balance per books + Credit memo - Debit memo + Overstatement of cash disbursements d. Balance per books + Credit memo - Debit memo - Overstatement of cash disbursements itor's books 7. If the balance shown on a company's bank statement is less than the correct cash balance, and neither the company nor the bank has made any errors, there must be a. deposits credited by the bank but not yet recorded by the company. b. outstanding checks. llected by the c. bank charges not yet recorded by the company. d. deposits in transit. (AICPA) tement. 8. Certified checks should be excluded from outstanding checks it. when preparing bank reconciliation. The rationale for this treatment is that a. the bank, when certifying checks, draws the check in its requires an account. b. the bank, when certifying checks, automatically debits the depositor's account. ly credited by c. the bank, when certifying checks, automatically credits the depositor's account. d by ABC Co. d. the bank, when certifying checks, assumes the obligation I the bank in to pay the drawee when the check is presented for payment. lited to ABC 9. When preparing a proof of cash, a credit memo from the ank previous month is a. extended to the book receipts column as an addition. pute for the b. extended to the bank receipts column as an addition. SHOT ON POCO M3 2021.2.4 12:37136 Chapter 3 c. extended to the book receipts column as a deduction. d. not extended in any of the book columns. 10. When preparing a proof of cash, an overstated book debit in the previous month is a. extended to the book receipts column as an addition. b. extended to the book receipts column as an addition. c. extended to the book disbursements column as a deduction. d. not included in the proof of cash if the error is already corrected in the current month. SHOT ON POCO M3 2021.2.4 12:37 PRORIEM 2
