119.
Rosemond Company establishes a $300 petty cash fund on September 9. On September
30, the fund shows $54 in cash along with receipts for the following expenditures: office
supplies, $40; postage expenses, $123; and miscellaneous expenses, $80. The petty
cashier could not account for a $3 shortage in the fund. The September 30 entry to
reimburse the fund is.
120.
On a bank reconciliation, an unrecorded debit memorandum for printing checks is:
121.
Childers Company has an established petty cash fund in the amount of $400. The fund
was last reimbursed on November 30. At the end of December, the fund contained the
following petty cash receipts:
December 4
Freight charge for merchandise
purchased
$62
December 7
Delivery charge for shipping to
customer
$46
December
12
Purchase of office supplies
$30
December
18
Donation to charitable
organization
$51
If, in addition to these receipts, the petty cash fund contains $201 of cash, the journal
entry to reimburse the fund on December 31 will include:
122.
An analysis that explains differences between the checking account balance according to
the depositor’s records and the balance reported on the bank statement is a(n):
123.
Outstanding checks refer to checks that have been:
124.
On a bank reconciliation, the amount of an unrecorded bank service charge should be:
125.
If a check that was outstanding on last period’s bank reconciliation was not among the
cancelled checks returned by the bank this period, in preparing this period’s reconciliation,
the amount of this check should be:
126.
If a company made a bank deposit on September 30 that did not appear on the bank
statement dated September 30, in preparing the September 30 bank reconciliation, the
company should:
127.
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?
128.
If a check correctly written and paid by the bank for $272 is incorrectly recorded in the
company’s books for $227, how should this error be treated on the bank reconciliation?
6-69
129.
During the month of July, Clanton Industries issued a check in the amount of $845 to a
supplier on account. The check did not clear the bank during July. In preparing the July 31
bank reconciliation, the company should:
130.
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:
131.
In the process of reconciling its bank statement for January, Maxi’s Clothing’s accountant
compiles the following information:
Cash balance per company books on
January 30
$4,725
Deposits in transit at month-end
$1,800
Outstanding checks at month-end
$520
Bank service charges
$25
EFT automatically paid monthly, not yet
recorded by Maxi
$380
An NSF check returned on a
customer account
$265
Book balance
– bank service charges
– EFT
– NSF check returned by bank
Adjusted book balance
The adjusted cash balance per the books on January 31 is:
132.
Which of the following events would cause a bank to debit a depositor’s account?
133.
Ramirez Clinic deposits all cash receipts on the day when they are received and it makes
all cash payments by check. At the close of business on June 30, 2016, its Cash account
shows an $14,445 debit balance. Ramirez Clinic’s June 30 bank statement shows $13,402
on deposit in the bank. The following information is also available:
a.
Outstanding checks as of June 30 total $1,829.
b.
The June 30 bank statement included a $16
debit memorandum for bank services.
c.
The June 30 cash receipts of $2,856 were
placed in the bank’s night depository after
banking hours and were not recorded on the
June 30 bank statement.
Bank balance
Book balance
Adjusted bank
Adjusted book
The adjusted cash balance per the books on June 30 is
134.
A seller (or provider) of goods or services to a business organization, usually a
manufacturer or wholesaler, is known as a:
135.
The internal document prepared by a department manager that informs the purchasing
department of its merchandise needs and requests that the merchandise be purchased is
the
136.
The document that the purchasing department prepares and sends to the vendor to place
an order is called the
137.
The itemized statement of goods, prepared by a vendor and sent to the buyer, listing the
customer’s name, items sold, sales prices, and terms of the sale is called the
138.
The internal document prepared to notify the appropriate persons that goods ordered have
been received, describing the quantities and condition of the goods is the
139.
The checklist of steps necessary for approving an invoice for recording and payment, also
known as the check authorization, is the
140.
A voucher system is a set of procedures and approvals:
141.
One of the specific requirements of the Sarbanes-Oxley Act (SOX) is that:
142.
All of the following are considered effective cash management principles
except
:
143.
Ryan Company deposits all cash receipts on the day they are received and makes all cash
payments by check. Ryan’s June bank statement shows $18,361 on deposit in the bank.
Ryan’s comparison of the bank statement to its cash account revealed the following:
Deposit in transit
$1,450
Outstanding checks
$837
Bank balance
+ Deposit in transit
– Outstanding checks
Additionally, a $29 check written and recorded by the company correctly was recorded by
the bank as a $92 deduction.
The adjusted cash balance per the bank records should be: