28) A company received a bank statement with a balance of $5,350. Reconciling items included a bookkeeper error
of $200 (a $300 check recorded as $500), two outstanding checks totaling $720, a service charge of $15, a deposit in
transit of $180, and interest revenue of $21. What is the adjusted bank balance?
A) $4,636
B) $4,610
C) $5,016
D) $4,810
29) A company’s cash ledger shows an ending balance of $5,000. Reconciling items included a bookkeeper error of
$200 (a $300 check recorded as $500), two outstanding checks totaling $720, a service charge of $15, a deposit in
transit of $180, and interest revenue of $21. What is the adjusted book balance?
A) $5,194
B) $4,486
C) $5,206
D) $4,806
30) Which of the following would be included in a 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 Miscellaneous expense and a credit to Cash
31) 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
32) In reconciling a bank statement, the bank balance is $1000 and the checkbook balance is $1205. Which of the
following is the MOST probable reason why the checkbook balance is larger than the bank balance?
A) The bank has not cleared certain checks.
B) The bank has added interest revenue to the account balance.
C) A deposit in transit was made at the end of the month.
D) The bank received an EFT from a customer.
33) In reconciling a bank statement, the bank balance is $1,800 and the checkbook balance is $1,205. Which of the
following is the MOST probable reason why the bank balance is larger than the book balance?
A) There are outstanding checks.
B) The bank has deducted certain amounts for bank service charges.
C) A deposit in transit was made at the end of the month.
D) The company erroneously recorded a check for an amount less than actual.
34) A check was written by a business for $329, but was recorded erroneously in the cash ledger as $239. How
would this error be included on the bank reconciliation?
A) An addition on the book side
B) A deduction on the bank side
C) A deduction on the book side
D) An addition on the bank side
35) The bank statement reveals an EFT received from a customer that has not yet been recorded in the ledger. How
would this information be included on the bank reconciliation?
A) An addition on the bank side
B) A deduction on the bank side
C) A deduction on the book side
D) An addition on the book side
36) The bank statement reveals an EFT payment made to one of the company’s suppliers that has not yet been
recorded in the ledger. How would this information be included on the bank reconciliation?
A) An addition on the bank side
B) A deduction on the bank side
C) A deduction on the book side
D) An addition on the book side
37) A ________ is a document explaining the reasons for the difference between a depositor’s cash records and the
depositor’s cash balance in its ledger.
A) bank statement
B) deposit receipt
C) bank reconciliation
D) remittance advice
38) The following information is available for Andersen Company for the month ending June 30, 2014.
• Balance per the bank statement is $10,241.43.
• Balance per books is $9,745.06.
• Check #506 for $1,948.52 and check #510 for $1,800.25 were not shown on the June 30 bank statement.
• A deposit in transit of $5,113.40 had not been received by the bank when the bank statement was generated.
• A bank debit memo indicated an NSF check in the amount of $79 written by Bruce Garrett to Andersen
Company on June 13.
• A bank credit memo indicated a note collected by the bank of $1,900 and interest revenue of $75 on June 20.
• The bank statement indicated service charges of $35.
What is the adjusted book balance?
A) $7,884.06
B) $11,606.06
C) $11,109.69
D) $7,971.29
39) The following information is available for Andersen Company for the month ending June 30, 2014.
• Balance per the bank statement is $10,241.43.
• Balance per books is $9,745.06.
• Check #506 for $1,948.52 and check #510 for $1,800.25 were not shown on the June 30 bank statement.
• A deposit in transit of $5,113.40 had not been received by the bank when the bank statement was generated.
• A bank debit memo indicated an NSF check in the amount of $79 written by Bruce Garrett to Andersen
Company on June 13.
• A bank credit memo indicated a note collected by the bank of $1,900 and interest revenue of $75 on June 20.
• The bank statement indicated service charges of $35.
What is the adjusted bank balance?
A) $8,876.80
B) $11,606.06
C) $19,103.60
D) $8,152.43
40) Please refer to the following bank reconciliation:
No journal entries are required for the reconciling items on the bank side because:
A) those transactions have already been recorded in the company ledger.
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 at June 30.
41) Please refer to the following bank reconciliation:
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 already occurred, but have not been recorded yet on the company books.
42) The following information is needed to reconcile the cash balance for Woods Paper Products.
• A deposit of $5,794.62 is in transit.
• Outstanding checks total $1,533.25.
• The book balance is $5,695.62.
• The bookkeeper recorded a $1,524.00 check as $15,240 in payment of the current month’s rent.
• The bank balance at February 28, 2008 was $16,500.25.
• A deposit of $300 was credited by the bank for $3,000.
• A customer’s check for $1,280 was returned for nonsufficient funds.
• The bank service charge is $70.
Based on this information, complete a bank reconciliation, in the format below, for Woods Paper Products as of
February 28, 2013.
43) The following information is needed to reconcile the cash balance for Woods Paper Products.
• A deposit of $5,794.62 is in transit.
• Outstanding checks total $1,533.25.
• The book balance is $5,695.62.
• The bookkeeper recorded a $1,524.00 check as $15,240 in payment of the current month’s rent.
• The bank balance at February 28, 2008 was $16,500.25.
• A deposit of $300 was credited by the bank for $3,000.
• A customer’s check for $1,280 was returned for nonsufficient funds.
• The bank service charge is $70.
Which of the following journal entries is needed to adjust for the booking error?
A) Cash
13,716
Sales revenue
13,716
B) Rent expense
15,240
Cash
1,524
C) Cash
13,716
Rent expense
13,716
D) Booking error
1,524
Cash
1,524
44) The following information is needed to reconcile the cash balance for Woods Paper Products.
• A deposit of $5,794.62 is in transit.
• Outstanding checks total $1,533.25.
• The book balance is $5,695.62.
• The bookkeeper recorded a $1,524.00 check as $15,240 in payment of the current month’s rent.
• The bank balance at February 28, 2008 was $16,500.25.
• A deposit of $300 was credited by the bank for $3,000.
• A customer’s check for $1,280 was returned for nonsufficient funds.
• The bank service charge is $70.
Which of the following journal entries is needed to adjust for the NSF check?
A)
Accounts receivable
1,280
Cash
1,280
B)
Cash
1,280
Sales revenue
1,280
C)
NSF check
1,280
Cash
1,280
D)
Accounts payable
1,280
Cash
1,280
45) The following information is needed to reconcile the cash balance for Woods Paper Products.
• A deposit of $5,794.62 is in transit.
• Outstanding checks total $1,533.25.
• The book balance is $5,695.62.
• The bookkeeper recorded a $1,524.00 check as $15,240 in payment of the current month‘s rent.
• The bank balance at February 28, 2008 was $16,500.25.
• A deposit of $300 was credited by the bank for $3,000.
• A customer’s check for $1,280 was returned for nonsufficient funds.
• The bank service charge is $70.
What was the adjusted book balance?
A) $6,670.38
B) $18,061.62
C) $20,761.62
D) $10,140.24
46) The following information is needed to reconcile the cash balance for Woods Paper Products.
• A deposit of $5,794.62 is in transit.
• Outstanding checks total $1,533.25.
• The book balance is $5,695.62.
• The bookkeeper recorded a $1,524.00 check as $15,240 in payment of the current month’s rent.
• The bank balance at February 28, 2008 was $16,500.25.
• A deposit of $300 was credited by the bank for $3,000.
• A customer’s check for $1,280 was returned for nonsufficient funds.
• The bank service charge is $70.
What was the adjusted bank balance?
A) $6,472.38
B) $18,061.62
C) $9,355.63
D) $14,938.88
47) Which of the following items are both 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
48) Which of the following items are both 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
49) The following information is available for Andersen Company for the month ending June 30, 2013.
• Balance per the bank statement is $10,241.43.
• Balance per books is $9,745.06.
• Check #506 for $1,948.52 and check #510 for $1,800.25 were not returned with the June 30 bank statement.
• A deposit in transit of $5,113.40 had not been received by the bank when the bank statement was generated.
• A bank debit memo indicated an NSF check in the amount of $79 written by Bruce Garrett to Andersen
Company on June 13.
• A bank credit memo indicated a note collected by the bank of $1,900 and interest revenue of $75 on June 20.
• The bank statement indicated service charges of $35.
Prepare a bank reconciliation for Andersen Company for June 30, 2013 in the format shown below.
50) Please refer to the following bank reconciliation:
Please prepare the adjusting entry for the first reconciling item (note collected by bank.)
Cash
51) Please refer to the following bank reconciliation:
Please prepare the adjusting entry for the second reconciling item (interest revenue.)
Cash
52) Please refer to the following bank reconciliation:
Please prepare the adjusting entry for the third reconciling item (NSF check.)
Accounts receivable