bank reconciliation questions

the bank will show a customer's deposit on the bank statement as a

credit because a deposit is a liability from the bank's point of view

this month's bank statement includes a check from a customer that was marked NSF. how would this item be treated on the bank reconciliation?

it would be deducted from the book balance

outstanding checks refer to checks that have been

written, recorded, sent to the payees, but not yet paid by the bank recorded by the company but not yet by the bank

Egrane, Inc.'s monthly bank statement showed the ending balance of cash of $14,800. The bank reconciliation for the period showed an adjustment for a deposit in transit of $1,200, outstanding checks of $1,600, a NSF check of $560, bank service charges of $24 and the EFT from a customer in payment of the customer's account of $1,200. What was the cash balance on the Egrane's books (before the adjustments for items on the bank reconciliation)?

13,784

Egrane, Inc.'s monthly bank statement showed the ending balance of cash of $14,800. The bank reconciliation for the period showed an adjustment for a deposit in transit of $1,200, outstanding checks of $1,600, a NSF check of $560, bank service charges of $24 and the EFT from a customer in payment of the customer's account of $1,200. What is the up-to-date ending Cash balance?

14,400 total + deposit in transit - outstanding check

While preparing the bank reconciliation for March, the accountant for Bertran Industries discovered that a $649 check in payment of an account payable had been entered incorrectly in the journal as $694. Which of the following is true?

An adjusting entry must be made to debit Cash and credit Accounts Payable for $45.

McKeel Publishing had outstanding checks totaling $7,560 on its June bank reconciliation. In July, McKeel issued checks totaling $54,460. The July bank statement shows that $36,820 in checks cleared the bank in July. The amount of outstanding checks on McKeel's July bank reconciliation should be:

add all of them= 25,200

in a bank reconciliation, an EFT received from a customer is:

added to the book balance

a bank reconciliation item that a company's bank may not know about would be: a. electronic funds transfer b. deposits in transit c. NSF checks d. service charges

b

Urban Bloom, Inc.'s books show an ending cash balance of $18,000 before preparing the bank reconciliation. Given the bank reconciliation shows outstanding checks of $5,400, deposits in transit of $3,600, NSF check of $180, and interest earned on the bank account of $18, the company's up-to-date ending cash balance equals:

balance + interest earned - NSF check= 17838

an internal report prepared to verify the accuracy of both the bank statement and cash accounts of a business or individual is a

bank reconciliation

which of the following situations would cause the balance per bank to be more than the balance per books? a. deposits in transit b. service charges c. outstanding checks d. checks from customers returned as NSF

c

a company made a bank deposit on September 30 that did not appear on the bank statement dated September 30. In preparing the September 30 bank reconciliation, the company should: a. deduct the deposit from the bank statement balance b. send the bank a debit memorandum c. deduct the deposit from the September 30 book balance and add it to the October 1 book balance d. add the deposit to the end cash balance per bank statement

d

which of the following would be added to the ending cash balance per bank when performing a bank reconciliation? a. electronic funds transfer b. service charges c. NSF checks d. deposits in transit

d

what journal entry must be prepared when the company is notified by the bank that a customer's check that had been deposited in the amount of $776 was returned NSF?

debit accounts receivable and credit cash $776

Egrane, Inc.'s monthly bank statement showed the ending balance of cash of $14,800. The bank reconciliation for the period showed an adjustment for a deposit in transit of $1,200, outstanding checks of $1,600, a NSF check of $560, bank service charges of $24 and the EFT from a customer in payment of the customer's account of $1,200. What journal entry should be recorded by Egrane for the NSF check returned?

debit accounts receivable and credit cash for $560

the bank will show a customer's withdrawal as a

debit because a withdrawal decreases its liability from the banks point of view

when you identify outstanding checks in performing a bank reconciliation, you must

deduct the amount of the outstanding checks from the balance per bank

A check that was outstanding on last period's bank reconciliation was not among the cancelled checks returned by the bank this period. In preparing the bank reconciliation for this period, the amount of this check should be:

deducted from the bank balance of cash

on a bank reconciliation, the amount of an NSF check is

deducted from the company's balance of cash

outstanding checks written by the company should be a _ on the company's bank reconciliation.

deduction from the bank balance

the bank credited your account for a deposit made by another bank customer. this bank error should be a _ on a bank reconciliation.

deduction from the bank balance

a bank service charge should be a _ on a bank reconciliation

deduction from the book balance

When preparing this month's bank reconciliation, you find that you failed to record a $1,240 deposit for a payment you received from a customer. You immediately prepare a journal entry to record the deposit. Which of the following describes the actions to be taken when preparing next month's bank reconciliation?

no further action is necessary in the next month

A deposit in transit on last month's bank reconciliation is shown as a deposit on the bank statement this month. As a result, in preparing this period's reconciliation, the amount of this deposit should:

not be included as a reconciling item

if a bank reconciliation included a deposit in transit of $100, the company's journal entry for this reconciling item would include

nothing, because the deposit has already been recorded

a check is said to have cleared the bank when

the bank withdraws the amount of the check from the check writer's account

On October 31, 2018, the bank statement shows that your company has $12,956.73 in its checking account. You are aware of three outstanding checks that total $2,112.19. During October, 2018, the bank rejected two deposited checks from customers totaling $654.19 because of insufficient funds and charged you $12.00 in service fees. You had not yet received notice about the bad checks, but you were aware of and have recorded the $12.00 of service fees. Prior to adjustment on October 31, 2018, your Cash account would have a balance of:

total- outstanding checks + NSF