| 1. Martinez Corporations cash account for September 30, 2014 had a $21,755 balance while the banks statement indicated a balance of $23,405. Reviewing the banks statement information, it reveals the following: a) Outstanding checks $3,985. b) Deposit in transit $5,140. c) A check for $1,435 returned with the statement had been incorrectly recorded as $635. The check was originally credited to accounts payable. d) Note collected by the bank $4,580. e) Bank service charges for the month $85.00. f) Non-sufficient funds check $890.00. Prepare a bank reconciliation as of September 30, 2014; then complete the following statement: The journal entry for the $4,580 note collected by the bank would be: (Points : 3) |
Debit Note Receivable $4,580; Credit Cash $4,580. Debit Accounts Payable $4,580; Credit Cash $4,580. Debit Cash $4,580; Credit Note Receivable $4,580. No journal entry would be made. |
| Question 2. 2. Martinez Corporations cash account for September 30, 2014 had a $21,755 balance while the banks statement indicated a balance of $23,405. Reviewing the banks statement information, it reveals the following: a) Outstanding checks $3,985. b) Deposit in transit $5,140. c) A check for $1,435 returned with the statement had been incorrectly recorded as $635. The check was originally credited to accounts payable. d) Note collected by the bank $4,580. e) Bank service charges for the month $85.00. f) Non-sufficient funds check $890.00. Prepare a bank reconciliation as of September 30, 2014; then complete the following statement: The adjusted cash balance per company record books on September 30 would be (Points : 3) |
$24,560. $23,560. $22,550. $21,860. |
| Question 3. 3. Martinez Corporations cash account for September 30, 2014 had a $21,755 balance while the banks statement indicated a balance of $23,405. Reviewing the banks statement information, it reveals the following: a) Outstanding checks $3,985. b) Deposit in transit $5,140. c) A check for $1,435 returned with the statement had been incorrectly recorded as $635. The check was originally credited to accounts payable. d) Note collected by the bank $4,580. e) Bank service charges for the month $85.00. f) Non-sufficient funds check $890.00. Prepare a bank reconciliation as of September 30, 2014; then complete the following statement: The check for $1,435 returned with the statement that had been incorrectly recorded as $635 in our accounting records (the check was originally credited to accounts payable on our accounting records) would result in a(n) (Points : 3) |
Increase in bank statement balance of $800. Deduction in company's records balance of $800. Deduction in company's records balance of $1,435. Increase in the bank statement balance of $1,435. |
| Question 4. 4. Martinez Corporations cash account for September 30, 2014 had a $21,755 balance while the banks statement indicated a balance of $23,405. Reviewing the banks statement information, it reveals the following: a) Outstanding checks $3,985. b) Deposit in transit $5,140. c) A check for $1,435 returned with the statement had been incorrectly recorded as $635. The check was originally credited to accounts payable. d) Note collected by the bank $4,580. e) Bank service charges for the month $85.00. f) Non-sufficient funds check $890.00. Prepare a bank reconciliation as of September 30, 2014; then complete the following statement: The journal entry for the outstanding checks would be (Points : 3) |
Debit Cash $3,985; Credit Accounts Payable $3,985. Debit Accounts Payable $3,985; Credit Cash $3,985. Debit Checks Outstanding $3,985; Credit Cash $3,985. No journal entry would be made. |
| Question 5. 5. Martinez Corporations cash account for September 30, 2014 had a $21,755 balance while the banks statement indicated a balance of $23,405. Reviewing the banks statement information, it reveals the following: a) Outstanding checks $3,985. b) Deposit in transit $5,140. c) A check for $1,435 returned with the statement had been incorrectly recorded as $635. The check was originally credited to accounts payable. d) Note collected by the bank $4,580. e) Bank service charges for the month $85.00. f) Non-sufficient funds check $890.00. Prepare a bank reconciliation as of September 30, 2014; then complete the following statement: The bank collection of the note of $4,580 would be: (Points : 3) |
Deduction from balance per company's records of $4,580. Addition to the balance per bank statement of $4,580. Deduction from the balance per bank statement. Addition to the balance per company's records. |
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