Questions 8 through 14

use the following information Brill Co. showed the following at 3/31/21

Balance per bank $13,000

Deposit in transit $1,000

Bank service charges $25

Electronic payments received by the bank but not yet recorded in books $4,000

Outstanding checks $6,000

NSF check from a customer $2,000

Balance per companys books $6,025

8) Brills reconciled bank and book balances at 3/31/21 are both

A) $800

B) $80,000

C) $8,000

D) $7,600

9) Brill would treat the outstanding checks as a (an)

A) Addition to the book balance

B) Subtraction from the bank balance

C) Addition to the bank balance

D) Not used, they have not yet been cashed

10) Brill would treat the electronic payments as a (an)

A) Addition to the bank balance

B) Subtraction from the book balance

C) Addition to the book balance

D) Subtraction from the bank balance

11) Brill would treat the NSF check from a customer as a (an)

A) Subtraction from the bank balance

B) Subtraction from the book balance

C) Addition to the bank balance

D) Addition to the book balance

12) Outstanding checks are checks that

A) Have not yet been deposited or cashed by the payee

B) Are very good

C) Have been voided

D) Have gold edges

13) Brills journal entry to adjust for the electronic payments is

A) Debit cash, credit sales

B) Debit sales, credit cash

C) Debit cash, credit A/R

D) Debit cash, credit A/P

14) The company has to make journal entries to correct for

A) Items the bank had included but had not yet been recorded in the companys books

B) Items the companys books had but the bank did not

C) Outstanding checks

D) Deposits in transit