The end of the financial year for Reynolds Ltd is 31 December. At that date, salaries and wages expenses of $580000 is closed to the profit and loss summary account. This balance includes $550000 for salaries and wages paid in cash during the year and accrued wages at the end of the year of $30000. Reynolds Ltd records a reversing entry for the accrued wages on 1 January. The first payment to employees for salaries and wages in the new financial year is $35000. This payment would be recorded as:

Select one:

a.DR Accrued Salaries and wages $30000; CR Bank $30000

b.DR Salaries and wages expense $5000; CR Bank $5000

c.DR Salaries and wages expense $35000; DR Accrued salaries and wages $30000; CR Bank $65000

d.DR Salaries and wages expense $35000; CR Bank $35000

e.DR Accrued Salaries and wages $35000; CR Bank $35000

When preparing a bank reconciliation what would cause the bank statement balance to be less than the adjusted cash balance in the general ledger? (Assume the bank isnotin overdraft.)

Select one:

a.Bank fees.

b.Direct withdrawal from the bank account.

c.Dishonoured cheques.

d.Outstanding deposits.

e.Outstanding cheques.