Bank Statement: September 1- September 30
Checks
Balance
Balance Sept 1.
September 7
September 11
September 12
September 17
September 26
September 29
September 30
Deposits
Other
$2,000
$1,900
$4,900
$4,100
$2,400
$100
$250
$230
NSF $100
$3,000
#1 $800
#2 $1,700
#3 $2,300
$150
Svc Ch. 20
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:
Sept. 10: $3,000
Sept. 30: $2,500
Checks:
Sept. 10:
Sept. 15:
Sept. 22:
Sept. 28:
#1
#2
#3
#4
$800
$1,700
$2,300
$50
Ending Balance September 30: $2,650
**Reconcile the cash account to determine the amount to show on the balance sheet***
Bank:
Ending Balance
Outstanding Checks
Outstanding Deposits
230
(50)
2500
Balance
$2680
Book:
Ending Balance
NSF Check
EFT Deposit
Service Charge
2650
(100)
150
(20)
$2680
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
Service
Manufacturer
Merchandiser
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
Bank; subtract
Book; subtract
EFT (Electronic Funds Transfer)
Deposits in Transit
Bank; add
Interest earned on cash in checking
Bank Service Charge
Book; add
Book; add
Book; subtract
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?
Beginning Inventory
Purchases
Ending Inventory
COGS
4800
700
(3500)
2000
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?
Beginning Inventory
Purchases
Ending Inventory
COGS
X + 1700 – 2000 = 2500
Beginning Inventory = 2800
x
1700
(2000)
2500