1. The following information is available for Birch Company at December 31:

Money market fund balance	$2,790
Certificate of deposit maturing June 30 of next year	$10,000
Postdated checks from customers	$1,475
Cash in bank account	$21,430
NSF checks from customers returned by bank	$650
Cash in petty cash fund	$200
Inventory of postage stamps	$24
U.S. Treasury bill purchased on December 15 and maturing on February 28 of following year	$5,000

Based on this information, Birch Company should report Cash and Cash Equivalents on December 31 of:

A) $29,420

B) $41,345

C) $31,345

D) $39,420

E) $38,770

2. Spencer Co. has a $200 petty cash fund. At the end of the first month the accumulated receipts represent $43 for delivery expenses, $127 for merchandise inventory, and $12 for miscellaneous expenses. The fund has a balance of $18. The journal entry to record the reimbursement of the account includes a:

A) Debit to Petty Cash for $200.

B) Debit to Cash Over and Short for $18.

C) Credit to Cash for $182.

D) Credit to Inventory for $127.

E) Credit to Cash Over and Short for $18.

3. If a check correctly written and paid by the bank for $749 is incorrectly recorded in the company's books for $794, how should this error be treated on the bank reconciliation?

A) Subtract $45 from the bank's balance.

B) Add $45 to the bank's balance.

C) Subtract $45 from the book balance.

D) Add $45 to the book balance.

E) Subtract $45 from the bank's balance and add $45 to the book's balance.

4. In the process of reconciling its bank statement for April, Donahue Enterprises' accountant compiles the following information:

Cash balance per company books on April 30	$6,275
Deposits in transit at month-end	$1,300
Outstanding checks at month-end	$620
Bank charge for printing new checks	$45
Note receivable and interest collected by bank on Donahue's behalf	$770
A check paid to Donahue during the month by a customer is returned by the bank as NSF	$480

The adjusted cash balance per the books on April 30 is:

A) $6,900

B) $8,160

C) $4,600

D) $6,520

E) $5,840