Accounting questions I need help with: At the end of the month of July you close
ID: 2543834 • Letter: A
Question
Accounting questions I need help with:
At the end of the month of July you close the books of your company and received the bank statement. You are ready to start with the Adjusting journal entries and realized that a bank reconciliation must be performed.
First you collect the data from June 30th reconciliation as follows:
Second you close your update your Cash and bank account with all transactions recorded before AJE and you have:
Third you look at the bank statement provided by your bank and you see the following:
Which of the following items have been deducted from the Cash and Bank account when doing the reconciliation?
Notes Collected $1,000
NSF Cheque $150
Interest $200
None of the others alternatives are correct
Errors $30
2.
At the end of the month of July you close the books of your company and received the bank statement. You are ready to start with the Adjusting journal entries and realized that a bank reconciliation must be performed.
First you collect the data from June 30th reconciliation as follows:
Second you close your update your Cash and bank account with all transactions recorded before AJE and you have:
Third you look at the bank statement provided by your bank and you see the following:
Which of the following adjusting journal entries is required after the bank reconciliation has been prepared?
Dr Cash $1,000 Cr. Accounts Receivables $1,000 (to reflect the NSF cheque)
Dr. Cash $50 Cr. bank fees $50 (to reflect bank fees for the month)
Dr. Phone Expenses $250 Cr. Cash $250 (to reflect the automatic payment of the phone - autowithdraw).
None of the others alternatives are correct
Dr. Interest revenue $180 Cr. Cash $180 (to reflect interest earned on bank balance).
3. At the end of the month of July you close the books of your company and received the bank statement. You are ready to start with the Adjusting journal entries and realized that a bank reconciliation must be performed.
First you collect the data from June 30th reconciliation as follows:
Second you close your update your Cash and bank account with all transactions recorded before AJE and you have:
Third you look at the bank statement provided by your bank and you see the following:
What is the amount of cheques written and paid in July?
$2,200
$1,800
$4,800
None of the others alternatives are correct
$4,000
4.
At the end of the month of July you close the books of your company and received the bank statement. You are ready to start with the Adjusting journal entries and realized that a bank reconciliation must be performed.
First you collect the data from June 30th reconciliation as follows:
Second you close your update your Cash and bank account with all transactions recorded before AJE and you have:
Third you look at the bank statement provided by your bank and you see the following:
Which of the following items have been deducted from the Cash and Bank account when doing the reconciliation?
Interest $180
Errors $30
Service Charges $50
Notes Collected $700
None of the others alternatives are correct
Balance per Bank $10,000 add: Deposits in Transit $1,800 deduct: Outstanding Cheques $(2,200) Balance per Books $9,600Explanation / Answer
Solution 1:
NSF check of $150 will be deducted from the Cash and Bank account when doing the reconciliation. hence 2nd option is the right choice.
Solution 2:
Dr. Phone Expenses $250 Cr. Cash $250 (to reflect the automatic payment of the phone - autowithdraw).
Hence 2nd option is the right choice.
All other adjusting entries are incorrect.
Solution 3:
Amount of chek written and paid in july will be check shown in cash and bank account i.e. $4,800
Hence 3rd option is the right choice.
Solution 4:
Service charges of $50 have been deducted from the Cash and Bank account when doing the reconciliation.
Hence 3rd option is the right choice.