Sam Company prepared the following bank reconciliation on November 30:
Balance per Bank Statement 2,100,000 Deposits outstanding 300,000 Checks outstanding ( 30,000 ) Correct cash balance 2,370,000 Balance per book 2,372,000 Bank service charge ( 2,000 ) Correct cash balance 2,370,000 December Data are as follows: Bank Book Checks recorded 2,300,000 2,360,000 Deposit recorded 1,620,000 1,800,000 Collection by bank 400,000 note receivable plus interest 420,000 - NSF customer check returned 10,000 Balances 1,830,000 1,810,000
1. What is the amount of checks outstanding on December 31?
a. 30,000
b. 90,000
c. 60,000
d. 0
2. What is the amount of deposits in transit on December 31?
a. 480,000
b. 120,000
c. 180,000
d. 680,000
3. What is the adjusted cash in bank on December 31?
a. 1,180,000
b. 2,220,000
c. 2,240,000
d. 2,780,000
Sam Company prepared the following bank reconciliation on November 30:
| Balance per Bank Statement | 2,100,000 | |
| Deposits outstanding | 300,000 | |
| Checks outstanding | ( 30,000 ) | |
| Correct cash balance | 2,370,000 | |
| Balance per book | 2,372,000 | |
| Bank service charge | ( 2,000 ) | |
| Correct cash balance | 2,370,000 | |
| December Data are as follows: | Bank | Book |
| Checks recorded | 2,300,000 | 2,360,000 |
| Deposit recorded | 1,620,000 | 1,800,000 |
| Collection by bank 400,000 note receivable plus interest | 420,000 | - |
| NSF customer check returned | 10,000 | |
| Balances | 1,830,000 | 1,810,000 |
1. What is the amount of checks outstanding on December 31?
a. 30,000
b. 90,000
c. 60,000
d. 0
2. What is the amount of deposits in transit on December 31?
a. 480,000
b. 120,000
c. 180,000
d. 680,000
3. What is the adjusted cash in bank on December 31?
a. 1,180,000
b. 2,220,000
c. 2,240,000
d. 2,780,000
Related questions
Pool company prepared the following bank reconciliation for the month of November:
| Balance per bank statement, November 30 | 3,600,000 | |
| Add: Deposit in Transit | 800,000 | |
| 4,400,000 | ||
| Less: Outstanding Checks | 1,200,000 | |
| Bank Credit recorded in error | 200,000 | 1,400,000 |
| Balance per book, November 30 | 3,000,000 | |
| Data Per bank statement for the month of December | ||
| December deposits, including notes receivable collected of 1,000,000 for Pool company | 5,500,000 | |
| December disbursement, including NSF check 350,000 and service charge 50,000 | 4,400,000 |
All items that were outstanding on november 30 cleared through the bank in december, including the bank credit
In addition checks of 500,000 were outstanding and deposits of 700,000 were in transit in December 31.
1. What is the adjusted cash in bank on December 31?
a. 4,700,000
b. 4,900,000
c. 4,500,000
d. 3,200,000
2. What is the balance of cash per ledger on December 31?
a. 4,100,000
b. 4,900,000
c. 4,700,000
d. 4,300,000
3. What is the amount of cash receipt per book in December?
a. 5,400,000
b. 4,400,000
c. 5,500,000
d. 6,400,000
4. What is the amount of cash disbursement per book in December?
a. 3,700,000
b. 3,300,000
c. 3,100,000
d. 3,500,000
Bank reconciliation
June Company provided the following information at month-end:
| Cash in bank per bank statement | 8,000,000 |
| Deposit in transit | 1,200,000 |
| Outstanding checks, including certified check of 200,000 | 1,500,000 |
| Amount erroneously credited by bank to June's account | 150,000 |
| Note collected by bank for June Company, including interest of 100,000 | 1,100,000 |
| Service charge for the current month | 20,000 |
| "NSF/No sufficent fund" checks of customers returned by bank | 500,000 |
| Error in recording a check in the book. The correct amount as paid by the bank is 100,000, instead of 200,000 as recorded in the book | 100,000 |
| Saving deposit in other bank closed by the Central Bank | 1,000,000 |
| Currency and coins on hand | 900,000 |
| Petty cash fund | 50,000 |
Please show solution.
1. What is the adjusted cash in bank at month-end?
a. 7,750,000
b. 7,900,000
c. 8,050,000
d. 7,550,000
2. What is the unadjusted cash in bank per ledger at month-end?
a. 7,070,000
b. 7,220,000
c. 7,270,000
d. 7,750,000
3. What total amount of cash should be reported as current asset?
a. 8,700,000
b. 9,700,000
c. 8,020,000
d. 8,850,000
