ACC 231 Study Guide - Midterm Guide: Accounts Receivable, Bank Statement

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turquoisegnu128

11 Oct 2018

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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

salmontrout842

The following data were accumulated for use in reconciling thebank account of Creative Design Co. for August 20Y6:

1.	Cash balance according to thecompanyâs records at August 31, $20,870.
2.	Cash balance according to the bankstatement at August 31, $37,600.
3.	Checks outstanding, $23,375.
4.	Deposit in transit not recorded bybank, $7,500.
5.	A check for $100 in payment of anaccount was erroneously recorded in the check register as$1,000.
6.	Bank debit memo for servicecharges, $45.

Prepare a bank reconciliation,using the format shown in

Exhibit 13

. Refer to the Amount Descriptions list provided for the exactwording of the answer choices for text entries. For those boxes inwhich you must enter subtracted or negative numbers use a minussign.

If the balance sheet wereprepared for Creative Design Co. on August 31 what amount should bereported for cash?

Must a bank reconciliation always balance(reconcile)?

AmountDescriptions
Adjusted balance
Bank service charge
Bank error in charging check as$100 instead of $1,000
Bank error in charging check as$1,000 instead of $100
Deposit in transit, not recorded bybank
Error in recording check as $100instead of $1,000
Error in recording check as $1,000instead of $100
Outstanding checks
Total adjustments