Question
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
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.
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