The process of preparing the bank reconciliation culminates in recording adjusting journal entries which involve cash-one of the few instances in which cash is affected by an adjusting entry. Which of the following would cause an adjusting journal entry to be recorded as a result of preparing the bank reconciliation?
7. A common format for the monthly bank reconciliation features two columns, one starting with the balance per bank (from the bank statement), and the other starting with the balance per the ledger (books). Which of the following is not an adjustment to the balance per books, but rather is an adjustment to the balance per bank?
8. Firms that receive significant sums of cash each day from customers are well-advised to make daily deposits to control and safeguard cash. Deposits in transit are a frequent occurrence. Choose the correct statement about a deposit in transit.
10. Among the accounts in the balance sheet, cash is unique. Check the attribute(s) of cash below that describe the amount of cash reported in the balance sheet.
11. When cash is reported in the balance sheet, more than one item may be included in the account balance. Check the item(s) that would be included in a firm's reported cash balance at the end of a fiscal year.
12. A common format for the monthly bank reconciliation features two columns, one starting with the balance per bank (from the statement), and the other starting with the balance per the ledger (books). Check the item(s) that would cause an adjustment to be made to the balance per bank, in the bank side of the reconciliation.
13. Bank reconciliations are part of the overall system of internal controls of the firm. Check the reason(s) for reconciling the bank account:
14. The internal control system for cash is designed to ensure compliance with company policy, protect cash, and guarantee that an adequate accounting system is in place. Check the characteristic(s) that would be beneficial to include in an internal control system for cash.
15. In March, Ana-log Inc. is notified by its bank that a customer check is NSF (nonsufficient funds). This check was collected from a customer on a credit sale made by Ana-log the previous month. Ana-log included the NSF check in its March bank reconciliation. The resulting adjusting entry includes a debit to _________.
16. In April, a firm wrote a check for $620 in payment of a purchase made in March. $620 is the correct amount but the firm recorded the payment for $260 in the journal entry. The check cleared the bank in April and was returned, along with all the other cleared checks, with the April bank statement. The required adjusting entry will reduce ________ $360.
17. Total sales for the year are $40,000. This amount includes cash sales of $6,000. The beginning and ending balances of accounts receivable are $10,000 and $15,000 respectively. The total amount of cash received from customers during the year equals $ __________.
18. The bank reconciliation for the current month listed 3 adjustments in the "balance per books" column, and 4 adjustments in the "balance per bank" column. The company makes separate adjusting entries for each adjustment. Therefore, the number of adjusting entries that will be made is ________.
19. Firms that require employees to receive and disburse currency and coin for routine business purposes usually maintain a petty cash fund. For a firm that has several different branch offices or manufacturing facilities, the total amount of petty cash can be significant. The petty cash fund for a firm at one of its locations was started by placing $500 into a locked box under the control of a custodian. At the end of the first month, $75 remained in the box. The slips authorizing and explaining the purpose for each employee expenditure were maintained in a separate compartment not accessible by the custodian. These slips replace the cash disbursed. When the petty cash fund is replenished, the journal entry will include a credit to ________ of $425.
Cash on hand $5,000 Checking account balance 2,000 Undeposited customer checks 1,000 Post dated customer check 800 Petty cash box 500* Money order from customer 900 Certificate of deposit 8,000 Cashier's check from customer 100 * not included in the cash on hand amountThe accountant did not include the following items in the cash account:
Cash sinking fund account $4,000 (for bond retirement six years from balance sheet date) Foreign currency holdings 1,200 (US dollar equivalent at the balance sheet date)The amount to be reported in the balance sheet for cash is $ __________.The process of preparing the bank reconciliation culminates in recording adjusting journal entries which involve cash-one of the few instances in which cash is affected by an adjusting entry. Which of the following would cause an adjusting journal entry to be recorded as a result of preparing the bank reconciliation?
7. A common format for the monthly bank reconciliation features two columns, one starting with the balance per bank (from the bank statement), and the other starting with the balance per the ledger (books). Which of the following is not an adjustment to the balance per books, but rather is an adjustment to the balance per bank?
8. Firms that receive significant sums of cash each day from customers are well-advised to make daily deposits to control and safeguard cash. Deposits in transit are a frequent occurrence. Choose the correct statement about a deposit in transit.
9. XON's bank mistakenly credited XON's checking account for a customer check that should have deposited in XOM's account. The error was discovered when the accountant for XON was analyzing the bank statement. Therefore:
10. Among the accounts in the balance sheet, cash is unique. Check the attribute(s) of cash below that describe the amount of cash reported in the balance sheet.
11. When cash is reported in the balance sheet, more than one item may be included in the account balance. Check the item(s) that would be included in a firm's reported cash balance at the end of a fiscal year.
12. A common format for the monthly bank reconciliation features two columns, one starting with the balance per bank (from the statement), and the other starting with the balance per the ledger (books). Check the item(s) that would cause an adjustment to be made to the balance per bank, in the bank side of the reconciliation.
13. Bank reconciliations are part of the overall system of internal controls of the firm. Check the reason(s) for reconciling the bank account:
14. The internal control system for cash is designed to ensure compliance with company policy, protect cash, and guarantee that an adequate accounting system is in place. Check the characteristic(s) that would be beneficial to include in an internal control system for cash.
15. In March, Ana-log Inc. is notified by its bank that a customer check is NSF (nonsufficient funds). This check was collected from a customer on a credit sale made by Ana-log the previous month. Ana-log included the NSF check in its March bank reconciliation. The resulting adjusting entry includes a debit to _________.
16. In April, a firm wrote a check for $620 in payment of a purchase made in March. $620 is the correct amount but the firm recorded the payment for $260 in the journal entry. The check cleared the bank in April and was returned, along with all the other cleared checks, with the April bank statement. The required adjusting entry will reduce ________ $360.
17. Total sales for the year are $40,000. This amount includes cash sales of $6,000. The beginning and ending balances of accounts receivable are $10,000 and $15,000 respectively. The total amount of cash received from customers during the year equals $ __________.
18. The bank reconciliation for the current month listed 3 adjustments in the "balance per books" column, and 4 adjustments in the "balance per bank" column. The company makes separate adjusting entries for each adjustment. Therefore, the number of adjusting entries that will be made is ________.
19. Firms that require employees to receive and disburse currency and coin for routine business purposes usually maintain a petty cash fund. For a firm that has several different branch offices or manufacturing facilities, the total amount of petty cash can be significant. The petty cash fund for a firm at one of its locations was started by placing $500 into a locked box under the control of a custodian. At the end of the first month, $75 remained in the box. The slips authorizing and explaining the purpose for each employee expenditure were maintained in a separate compartment not accessible by the custodian. These slips replace the cash disbursed. When the petty cash fund is replenished, the journal entry will include a credit to ________ of $425.
Cash on hand $5,000 Checking account balance 2,000 Undeposited customer checks 1,000 Post dated customer check 800 Petty cash box 500* Money order from customer 900 Certificate of deposit 8,000 Cashier's check from customer 100 * not included in the cash on hand amountThe accountant did not include the following items in the cash account:
Cash sinking fund account $4,000 (for bond retirement six years from balance sheet date) Foreign currency holdings 1,200 (US dollar equivalent at the balance sheet date)The amount to be reported in the balance sheet for cash is $ __________.The process of preparing the bank reconciliation culminates in recording adjusting journal entries which involve cash-one of the few instances in which cash is affected by an adjusting entry. Which of the following would cause an adjusting journal entry to be recorded as a result of preparing the bank reconciliation?
7. A common format for the monthly bank reconciliation features two columns, one starting with the balance per bank (from the bank statement), and the other starting with the balance per the ledger (books). Which of the following is not an adjustment to the balance per books, but rather is an adjustment to the balance per bank?
8. Firms that receive significant sums of cash each day from customers are well-advised to make daily deposits to control and safeguard cash. Deposits in transit are a frequent occurrence. Choose the correct statement about a deposit in transit.
9. XON's bank mistakenly credited XON's checking account for a customer check that should have deposited in XOM's account. The error was discovered when the accountant for XON was analyzing the bank statement. Therefore:
10. Among the accounts in the balance sheet, cash is unique. Check the attribute(s) of cash below that describe the amount of cash reported in the balance sheet.
11. When cash is reported in the balance sheet, more than one item may be included in the account balance. Check the item(s) that would be included in a firm's reported cash balance at the end of a fiscal year.
12. A common format for the monthly bank reconciliation features two columns, one starting with the balance per bank (from the statement), and the other starting with the balance per the ledger (books). Check the item(s) that would cause an adjustment to be made to the balance per bank, in the bank side of the reconciliation.
13. Bank reconciliations are part of the overall system of internal controls of the firm. Check the reason(s) for reconciling the bank account:
14. The internal control system for cash is designed to ensure compliance with company policy, protect cash, and guarantee that an adequate accounting system is in place. Check the characteristic(s) that would be beneficial to include in an internal control system for cash.
15. In March, Ana-log Inc. is notified by its bank that a customer check is NSF (nonsufficient funds). This check was collected from a customer on a credit sale made by Ana-log the previous month. Ana-log included the NSF check in its March bank reconciliation. The resulting adjusting entry includes a debit to _________.
16. In April, a firm wrote a check for $620 in payment of a purchase made in March. $620 is the correct amount but the firm recorded the payment for $260 in the journal entry. The check cleared the bank in April and was returned, along with all the other cleared checks, with the April bank statement. The required adjusting entry will reduce ________ $360.
17. Total sales for the year are $40,000. This amount includes cash sales of $6,000. The beginning and ending balances of accounts receivable are $10,000 and $15,000 respectively. The total amount of cash received from customers during the year equals $ __________.
18. The bank reconciliation for the current month listed 3 adjustments in the "balance per books" column, and 4 adjustments in the "balance per bank" column. The company makes separate adjusting entries for each adjustment. Therefore, the number of adjusting entries that will be made is ________.
19. Firms that require employees to receive and disburse currency and coin for routine business purposes usually maintain a petty cash fund. For a firm that has several different branch offices or manufacturing facilities, the total amount of petty cash can be significant. The petty cash fund for a firm at one of its locations was started by placing $500 into a locked box under the control of a custodian. At the end of the first month, $75 remained in the box. The slips authorizing and explaining the purpose for each employee expenditure were maintained in a separate compartment not accessible by the custodian. These slips replace the cash disbursed. When the petty cash fund is replenished, the journal entry will include a credit to ________ of $425.
Cash on hand $5,000 Checking account balance 2,000 Undeposited customer checks 1,000 Post dated customer check 800 Petty cash box 500* Money order from customer 900 Certificate of deposit 8,000 Cashier's check from customer 100 * not included in the cash on hand amountThe accountant did not include the following items in the cash account:
Cash sinking fund account $4,000 (for bond retirement six years from balance sheet date) Foreign currency holdings 1,200 (US dollar equivalent at the balance sheet date)The amount to be reported in the balance sheet for cash is $ __________.
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