Chapter 9 Quiz Accounting

Most businesses use the petty cash fund to pay for

small expenditures.

A firm's bank reconciliation statement shows a book balance of $15,940, an NSF check of $460, and a service charge of $26. Its adjusted book balance is

15454

Lourdes LLC. keeps a $100 change fund in its cash register. At the end of the day, cash sales per the register tape were $2,650. The cash count was $3,000.Calculate the amount over or short.

Amount over, 250

Identify the items below that would all appear as an addition or subtraction from the Book Balance side of a bank reconciliation statement.

Bank service charges, customer NSF check.

During the month a company paid $63.75 for office supplies and $72.22 for miscellaneous expenses from the petty cash fund. The entry to replenish the petty cash fund at the end of the month would include

a credit to cash

To arrive at an accurate balance on a bank reconciliation statement, an error made by the bank in which the bank deducted a check issued by another business from the balance of the company's bank account should be

added to the bank statement balance.

The journal entry to record the collection of the amount due on an interest-bearing promissory note from a customer would debit Cash, credit Notes Receivable, and

credit Interest Income.

To arrive at an accurate balance on a bank reconciliation statement, a debit memorandum for a customer check marked NSF should be

deducted from the book balance