Accounting Ch 7

A bank reconciliation for Lightening Company included the following items: $40 bank service charge; NSF check of $125; bank error of $28; collection of note receivable for $1,200, plus $45 interest. Based on the information, Lightening Company will adjust cash by what amount?

Lightening does not adjust its balance because of the $28 bank error. The other amounts are netted ($1,200 + $45 - $125 - $40) to equal $1,080.

In preparing a bank reconciliation, the adjusted cash balance per bank is $8,278. If the cash balance per bank statement is $10,141 and deposits in transit are $2,825, what amount represents outstanding checks for the most recent banking period?

Outstanding checks are determined by adding the cash balance per bank statement to the deposits in transit, then subtracting the adjusted cash balance per bank ($10,141 + $2,825 - $8,278 = $4,688).

: In preparing a bank reconciliation, the adjusted cash balance per bank is $9,685. If the cash balance per bank statement is $11,873 and deposits in transit are $3,429, what amount represents outstanding checks for the most recent banking period?

Outstanding checks are determined by adding the cash balance per bank statement to the deposits in transit, then subtracting the adjusted cash balance per bank ($11,873 + $3,429 - $9,685 = $5,617).

In preparing a bank reconciliation, the adjusted cash balance per bank is $13,860. If outstanding checks total $6,325 and the cash balance per bank statement is $17,420, what amount represents deposits in transit?

When performing the bank side of a bank reconciliation, deposits in transit are added to the cash balance per bank statement. Then, outstanding checks are subtracted to arrive at the adjusted cash balance per bank. $17,420 + deposits in transit - $6,325 = 11,095 + deposits in transit = $13,860; deposits in transit = $2,765.

The acronym DM could signify which of the following?

the cost of printing checks