Bank Statement: September 1- September 30
Bank Statement: September 1- September 30
Checks Deposits OtherBalance
Balance Sept 1.$2,000
September 7NSF $100$1,900
September 11$3,000$4,900
September 12#1 $800$4,100
September 17#2 $1,700$2,400
September 26#3 $2,300$100
September 29$150$250
September 30Svc Ch. 20$230
There were NO outstanding checks or deposits in transit at the end of August. However, there are outstanding checks and deposits in transit at the end of September.
Books: Below are the recorded cash activities recorded to the companies books.
Beginning Balance Septemeber 1: $2,000
Deposits:Checks:
Sept. 10: $3,000Sept. 10: #1$800
Sept. 30: $2,500Sept. 15: #2$1,700
Sept. 22: #3$2,300
Sept. 28: #4$50
Ending Balance September 30: $2,650
**Reconcile the cash account to determine the amount to show on the balance sheet***
After receiving your bank statement, you notice a bank service charge. Which of the following actions need to be taken to reconcile your cash account?
a. Increase the book balance; no change to the bank’s balance.
b. Decrease the book balance; decrease the bank’s balance.
c. Decrease the book balance; no change to the bank’s balance.
d. No change to either account.
Company Y sells notebooks, pencils, pens, and books. What type of business is Company Y?
a. Service
b. Manufacturer
c. Merchandiser
d. None of the above.
List the 3 Types of Businesses
For each of the following, list whether your company or the bank needs to make an adjustment and whether its +/- :
Out Standing Checks
NSF Checks
EFT (Electronic Funds Transfer)
Deposits in Transit
Interest earned on cash in checking
Bank Service Charge
Company A had beginning Inventory of $4800. In the month of August they purchased $700 worth of inventory. Their ending inventory at the end of the month is $3500. How much was their COGS for the month of August?
Company B had an ending inventory of $2000. In the month of August they purchased $1700 worth of inventory and sold $2500. How much was their beginning inventory at the beginning of August?
4. The proper treatment on the bank reconciliation of outstanding checks is to
A) add them to the book balance of cash.
B) add them to the bank balance of cash.
C) deduct them from the book balance of cash.
D) deduct them from the bank balance of cash.
5. The proper treatment on the bank reconciliation of deposits in transit is to
A) add them to the book balance of cash.
B) add them to the bank balance of cash.
C) deduct them from the book balance of cash.
D) deduct them from the bank balance of cash.
6. The proper treatment on the bank reconciliation of NSF checks returned with the statement is to
A) add them to the book balance of cash.
B) add them to the bank balance of cash.
C) deduct them from the book balance of cash.
D) deduct them from the bank balance of cash.
7. The proper treatment on the bank reconciliation of interest earned on the depositor's checking account is to
A) add it to the book balance of cash.
B) add it to the bank balance of cash.
C) deduct it from the book balance of cash.
D) deduct it from the bank balance of cash.
8. The company bookkeeper recorded a bank deposit of daily sales as a debit to Cash for $450. The bank recorded the deposit at its correct amount of $540. The proper treatment on the bank reconciliation of this $90 error is to
A) add it to the book balance of cash.
B) add it to the bank balance of cash.
C) deduct it from the book balance of cash.
D) deduct it from the bank balance of cash.