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49) The following information is available for Juno Company for the month ending June 30, 2019.
• Balance as per the bank statement is $12,000.
• Balance as per books is $10,400.
• Check #506 for $1,400 and check #510 for $800 were not shown on the June 30, bank statement.
• A deposit in transit of $2,541 had not been received by the bank when the bank statement
was generated.
• A bank debit memo indicated an NSF check for $90 written by Jane Smith to Juno Company
on June 13.
• A bank credit memo indicated a note collected by the bank of $2,000 and interest revenue
of $51 on June 20.
• The bank statement indicated service charges of $20.
What is the adjusted book balance?
A) $12,361
B) $12,341
C) $8,251
D) $8,200
50) The following information is needed to reconcile the cash balance for Discount Dry Cleaning, Inc.
• A deposit of $5,600 is in transit.
• Outstanding checks total $1,300.
• The book balance is $6,300 at February 28, 2019.
• The bookkeeper recorded a $1,600 check as $17,400 in payment of the current month's rent.
• The bank balance at February 28, 2019 was $17,930.
• A deposit of $400 was credited by the bank for $4,000.
• A customer's check for $3,400 was returned for nonsufficient funds.
• The bank service charge is $70.
What was the adjusted book balance?
A) $18,700
B) $18,000
C) $18,630
D) $18,770
51) The following information is needed to reconcile the cash balance for Gourmet Catering Services.
• A deposit of $5,600 is in transit.
• Outstanding checks total $1,000.
• The book balance is $6,400 at February 28, 2019.
• The bookkeeper recorded a $1,800 check as $17,200 in payment of the current month's rent.
• The bank balance at February 28, 2019 was $17,410.
• A deposit of $400 was credited by the bank for $4,000.
• A customer's check for $3,300 was returned for nonsufficient funds.
• The bank service charge is $90.
What was the adjusted book balance?
A) $18,500
B) $18,410
C) $18,590
D) $17,500
52) The following information is available for Ashley Company for the month ending June 30, 2019.
• Balance as per the bank statement is $11,240.
• Balance as per books is $10,200.
• Check #506 for $1,200 and check #510 for $900 were not shown on the June 30 bank statement.
• A deposit in transit of $3,110 had not been received by the bank when the bank statement
was generated.
• A bank debit memo indicated an NSF check for $85 written by Maddie Wolfe to
Ashley Company on June 13.
• A bank credit memo indicated a note collected by the bank of $2,100 and interest revenue
of $55 on June 20.
• The bank statement indicated service charges of $20.
Prepare bank reconciliation for Ashley Company for June 30, 2019.
53) The following information is needed to reconcile the cash balance for Natural Landscaping Services.
• A deposit of $5,800 is in transit.
• Outstanding checks total $1,500.
• The book balance is $6,800 at February 28, 2019.
• The bookkeeper recorded a $1,740 check as $17,400 in payment of the current month's rent.
• The bank balance at February 28, 2019 was $18,000.
• A deposit of $400 was credited by the bank for $4,000.
• A customer's check for $3,700 was returned for nonsufficient funds.
• The bank service charge is $60.
Based on this information, prepare a bank reconciliation for Natural Landscaping Services as of February
28, 2019.
54) In a bank reconciliation, a book error will be shown on the bank side of the reconciliation.
55) In a bank reconciliation, outstanding checks will be shown on the bank side of the reconciliation.
56) In a bank reconciliation, a deposit in transit will be shown on the bank side of the reconciliation.
57) The bank made an EFT payment of a telephone bill of $5,000. How would this information be
included on the bank reconciliation?
A) an addition on the bank side
B) a deduction on the book side
C) an addition on the book side
D) a deduction on the bank side
58) A check of $300,000, deposited by a company, was returned to the bank for nonsufficient funds. How
would this information be included on the bank reconciliation?
A) a deduction on the bank side
B) an addition on the bank side
C) an addition on the book side
D) a deduction on the book side
59) The bank charged a service fee of $55. How would this information be included on the bank
reconciliation?
A) a deduction on the bank side
B) an addition on the book side
C) a deduction on the book side
D) an addition on the bank side
60) Which of the following items are reconciling items on the bank side of the reconciliation?
A) outstanding checks and correction of book error
B) deposit in transit and NSF check
C) deposit in transit and outstanding checks
D) bank service charge and correction of book error
61) Which of the following items are reconciling items on the book side of the reconciliation?
A) outstanding checks and correction of book error
B) deposit in transit and NSF check
C) bank service charge and outstanding checks
D) bank service charge and correction of book error
62) The cash balance in a company's general ledger and the company's bank balance on the bank
statement will always be the same.
63) On a bank reconciliation, deposits in transit are added on the bank side of the reconciliation.
64) If the bank reconciliation includes a bank service charge, a journal entry is required, which debits
Bank Expense and credits Cash.
65) If the bank reconciliation includes a deposit in transit, a journal entry is required that includes a debit
to Cash.
66) Journal entries are required if the bank reconciliation includes outstanding checks.
67) Journal entries are required if the bank reconciliation includes a book error.
68) Journal entries that arise from reconciling items on the book side of the bank reconciliation include
either a debit to Cash or a credit to Cash.
69) Which of the following would be included in the journal to record an NSF check?
A) a debit to Accounts Payable and a credit to Cash
B) a debit to Accounts Receivable and a credit to Cash
C) a debit to Cash and a credit to Accounts Receivable
D) a debit to Bank Expense and a credit to Cash
70) Which of the following items would require an adjusting entry after preparation of the bank
reconciliation?
A) errors made by the bank revealed by the bank reconciliation
B) all items on the bank's side
C) errors made on the books revealed by the bank reconciliation
D) outstanding checks
71) No journal entries are required for the reconciling items on the bank side because ________.
A) those transactions have already been recorded in the company's journal
B) the adjusted balances on both sides are the same amounts
C) the amounts are immaterial
D) those transactions are already included in the bank balance
72) Journal entries are required for the reconciling items on the book side because ________.
A) those transactions have not yet been recorded by the bank
B) the adjusted balances on both sides are the same amounts
C) the amounts are immaterial
D) those transactions have not yet been recorded on the company's books
73) The bookkeeper of Wilson Electric Supply, Inc. recorded a $1,500 check as $15,000 in payment of the
current month's rent. Which of the following journal entries is needed to adjust for this error in the books
of the company?
A)
Cash
13,500
Sales Revenue
13,500
B)
Rent Expense
15,000
Cash
15,000
C)
Cash
13,500
Rent Expense
13,500
D)
Booking Error
1,500
Cash
1,500
74) A customer's check for $1,210 was returned for nonsufficient funds. Which of the following journal
entries is needed to adjust for the NSF check?
A)
Accounts Receivable
1,210
Cash
1,210
B)
Cash
1,210
Sales Revenue
1,210
C)
NSF Check
1,210
Cash
1,210
D)
Accounts Payable
1,210
Cash
1,210
