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Question 7(Mandatory)(3.5 points) As of 12/31 the cash balance in Ellery, Inc.'sbooks is $75,000.The bank statement, however, showed a balance of $100,000 as of the

Question 7(Mandatory)(3.5 points)

As of 12/31 the cash balance in Ellery, Inc.'sbooks is $75,000.The bank statement, however, showed a balance of $100,000 as of the same date.The only reconciling items were deposits in transit of $15,000, interest earned of $225, a bank service charge of $115 and outstanding checks.

______________________________

In determining the Adjusted Book Balance, the following adjustment is made in regards to the deposits in transit:

Question 7 options:

$15,000 is subtracted from the balance of Ellery, Inc.'s 12/31 cash balance on its bank statement.

$15,000 is added to the balance of Ellery, Inc.'s 12/31 cash balance on its bank statement.

$15,000 is subtracted from the balance of Ellery, Inc.'s 12/31 cash balance on its books.

$15,000 is added to the balance of Ellery, Inc.'s 12/31 cash balance on its books.

No adjustment is required.

Question 8(Mandatory)(3.5 points)

As of 12/31 the cash balance in Ellery, Inc.'sbooks is $75,000.The bank statement, however, showed a balance of $100,000 as of the same date.The only reconciling items were deposits in transit of $15,000, interest earned of $225, a bank service charge of $115 and outstanding checks.

______________________________

In determining the Adjusted Book Balance, the following adjustment is made in regards to interest earned:

Question 8 options:

$225 is added to the balance of Ellery, Inc.'s 12/31 cash balance on its bank statement.

$225 is subtracted from the balance of Ellery, Inc.'s 12/31 cash balance on its books.

$225 is subtracted from the balance of Ellery, Inc.'s 12/31 cash balance on its bank statement.

$225 is added to the balance of Ellery, Inc.'s 12/31 cash balance on its books.

No adjustment is required.

Question 9(Mandatory)(3.5 points)

As of 12/31 the cash balance in Ellery, Inc.'sbooks is $75,000.The bank statement, however, showed a balance of $100,000 as of the same date.The only reconciling items were deposits in transit of $15,000, interest earned of $225, a bank service charge of $115 and outstanding checks.

______________________________

In determining the Adjusted Book Balance, the following adjustment is made in regards to the service charge:

Question 9 options:

$115 is added to the balance of Ellery, Inc.'s 12/31 cash balance on its books.

$115 is subtracted from the balance of Ellery, Inc.'s 12/31 cash balance on its books.

$115 is subtracted from the balance of Ellery, Inc.'s 12/31 cash balance on its bank statement.

No adjustment is required.

$115 is added to the balance of Ellery, Inc.'s 12/31 cash balance on its bank statement.

Question 10(Mandatory)(3.5 points)

As of 12/31 the cash balance in Ellery, Inc.'sbooks is $75,000.The bank statement, however, showed a balance of $100,000 as of the same date.The only reconciling items were deposits in transit of $15,000, interest earned of $225, a bank service charge of $115 and outstanding checks.

______________________________

In determining the Adjusted Book Balance, the following adjustment is made in regards to the outstanding checks:

Question 10 options:

The value of outstanding checks is subtracted from the balance of Ellery, Inc.'s 12/31 cash balance on its books.

The value of outstanding checks is added to the balance of Ellery, Inc.'s 12/31 cash balance on its books.

The value of outstanding checks is subtracted from the balance of Ellery, Inc.'s 12/31 cash balance on its bank statement.

No adjustment is required.

The value of outstanding checks is added to the balance of Ellery, Inc.'s 12/31 cash balance on its bank statement.

Question 11(Mandatory)(3.5 points)

As of 12/31 the cash balance in Ellery, Inc.'sbooks is $75,000.The bank statement, however, showed a balance of $100,000 as of the same date.The only reconciling items were deposits in transit of $15,000, interest earned of $225, a bank service charge of $115 and outstanding checks.

______________________________

In determining the Adjusted Bank Statement Balance, the following adjustment is made in regards to the deposits in transit:

Question 11 options:

$15,000 is subtracted from the balance of Ellery, Inc.'s 12/31 cash balance on its bank statement.

$15,000 is subtracted from the balance of Ellery, Inc.'s 12/31 cash balance on its books.

$15,000 is added to the balance of Ellery, Inc.'s 12/31 cash balance on its bank statement.

$15,000 is added to the balance of Ellery, Inc.'s 12/31 cash balance on its books.

No adjustment is required.

Question 12(Mandatory)(3.5 points)

As of 12/31 the cash balance in Ellery, Inc.'sbooks is $75,000.The bank statement, however, showed a balance of $100,000 as of the same date.The only reconciling items were deposits in transit of $15,000, interest earned of $225, a bank service charge of $115 and outstanding checks.

______________________________

In determining the Adjusted Bank Statement Balance, the following adjustment is made in regards to interest earned:

Question 12 options:

No adjustment is required.

$225 is subtracted from the balance of Ellery, Inc.'s 12/31 cash balance on its bank statement.

$225 is added to the balance of Ellery, Inc.'s 12/31 cash balance on its books.

$225 is subtracted from the balance of Ellery, Inc.'s 12/31 cash balance on its books.

$225 is added to the balance of Ellery, Inc.'s 12/31 cash balance on its bank statement.

Question 13(Mandatory)(3.5 points)

As of 12/31 the cash balance in Ellery, Inc.'sbooks is $75,000.The bank statement, however, showed a balance of $100,000 as of the same date.The only reconciling items were deposits in transit of $15,000, interest earned of $225, a bank service charge of $115 and outstanding checks.

______________________________

In determining the Adjusted Bank Statement Balance, the following adjustment is made in regards to the service charge:

Question 13 options:

$115 is subtracted from the balance of Ellery, Inc.'s 12/31 cash balance on its books.

$115 is added to the balance of Ellery, Inc.'s 12/31 cash balance on its books.

$115 is added to the balance of Ellery, Inc.'s 12/31 cash balance on its bank statement.

$115 is subtracted from the balance of Ellery, Inc.'s 12/31 cash balance on its bank statement.

No adjustment is required.

Question

As of 12/31 the cash balance in Ellery, Inc.'sbooks is $75,000.The bank statement, however, showed a balance of $100,000 as of the same date.The only reconciling items were deposits in transit of $15,000, interest earned of $225, a bank service charge of $115 and outstanding checks.

______________________________

In determining the Adjusted Bank Statement Balance, the following adjustment is made in regards to the outstanding checks:

Question 14 options:

No adjustment is required.

The value of outstanding checks is added to the balance of Ellery, Inc.'s 12/31 cash balance on its bank statement.

The value of outstanding checks is added to the balance of Ellery, Inc.'s 12/31 cash balance on its books.

The value of outstanding checks is subtracted from the balance of Ellery, Inc.'s 12/31 cash balance on its bank statement.

The value of outstanding checks is subtracted from the balance of Ellery, Inc.'s 12/31 cash balance on its books.

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