Financial
8
81. A bank statement includes:
A. A list of outstanding checks.
B. A list of petty cash amounts.
C. The beginning and the ending balance of the depositor's account.
D. A listing of deposits in transit.
E. All of these.
109. An analysis that explains any differences between the checking account balance according to the depositor's
records and the balance reported on the bank statement is a(n):
A. Internal audit.
B. Bank reconciliation.
C. Bank audit.
D. Trial reconciliation.
E. Analysis of debits and credits.
110. On a bank reconciliation, an unrecorded debit memorandum for printing checks is:
A. Noted as a memorandum only.
B. Added to the book balance of cash.
C. Deducted from the book balance of cash.
D. Added to the bank balance of cash.
E. Deducted from the bank balance of cash.
111. Outstanding checks refer to checks that have been:
A. Written, recorded, sent to payees, and received and paid by the bank.
B. Written and not yet recorded in the company books.
C. Held as blank checks.
D. Written, recorded on the company books, sent to the payee, but have not yet been paid by the bank.
E. Issued by the bank.
112. On a bank reconciliation, the amount of an unrecorded bank service charge should be:
A. Added to the book balance of cash.
B. Deducted from the book balance of cash.
C. Added to the bank balance of cash.
D. Deducted from the bank balance of cash.
E. Noted in memorandum form only.
113. A check that was outstanding on last period's bank reconciliation was not among the cancelled checks returned by
the bank this period. As a result, in preparing this period's reconciliation, the amount of this check should be:
A. Added to the book balance of cash.
B. Deducted from the book balance of cash.
C. Added to the bank balance of cash.
D. Deducted from the bank balance of cash.
E. Ignored in preparing the period's bank reconciliation.
Financial
9
The following information is available for the Avisa Company for the month of November.
a) On November 30, after all transactions have been recorded, the balance in the company's
Cash account has a balance of $27,202.
b) The company's bank statement shows a balance on November 30 of $29,279.
c) Outstanding checks at November 30 include check #3030 in the amount of $1,525 and check
#3556 in the amount of $1,459.
d) A credit memo included with the bank statement indicates that the bank collected $780 on a
noninterest-bearing note receivable for Avisa. The bank deducted a $10 collection fee, and
credited the remainder of $770 to Avisa's account.
e) A debit memo included with the bank statement shows a $67 NSF check from a customer, J.
Brown.
f) A deposit placed in the bank's night depository on November 30 totaled $1,675, and did not
appear on the bank statement.
g) Examination of the checks on the bank statement with the entries in the accounting records
reveals that check #3445 for the payment of an account payable was correctly written for
$2,450, but was recorded in the accounting records as $2,540.
h) Included with the bank statement was a debit memorandum in the amount of $25 for bank
service charges. It has not been recorded on the company's books.
Required:1. Prepare the November bank reconciliation for the Avisa Company.
2. Prepare the general journal entries to bring the company's book balance of cash into
conformity with the reconciled balance as of November 30.
Financial
10
Solution
Bank reconcliation
Cash balance per bank
29279 Cash balance per book
Add
Deposit in transit
Add
1675 Collection of note
Error in account payable
(2540-2450)
Deduct
(1525) NSF (account receivable)
(1429) Service chrage
Collection fees
Deduct
Outstanding checks
#3030
#3556
Adjusted cash balance
27202
780
90
(67)
(25)
(10)
27970 Adjusted cash balance
27970
b) journal entry
Dr
‫التسجيل عند الشركه‬
‫فقط‬
Cash
Cr
870
Note receivable
Error in account payable
Account receivable – NSF
Bank service expense
Collection expense
Cash
780
90
67
25
10
102
‫واحد‬entry ‫ممكن نعمل‬
Account receivable – NSF
Bank service expense
Collection expense
Cash
‫متمم‬
Note receivable
Error in account payable
67
25
10
768
780
90
Financial
11
Prepare a bank reconciliation for Jamboree Enterprises for the month ended November 30,
2011. The following information is available to reconcile Jamboree Enterprises’ book balance
of cash with its bank statement balance as of November 30, 2011:
a. After all posting is complete on November 30, the company’s book balance of Cash has a
$16,380 debit balance, but its bank statement shows a $38,520 balance.
b. Checks No. 2024 for $4,810 and No. 2026 for $5,000 are outstanding.
c. In comparing the canceled checks on the bank statement with the entries in the accounting
records, it is found that Check No. 2025 in payment of rent is correctly drawn for $1,000 but
is erroneously entered in the accounting records as $880.
d. The November 30 deposit of $17,150 was placed in the night depository after banking hours
on that date, and this amount does not appear on the bank statement.
e. In reviewing the bank statement, a check written by Jumbo Enterprises in the amount of
$160 was erroneously drawn against Jamboree’s account.
f. A credit memorandum enclosed with the bank statement indicates that the bank collected a
$30,000 note and $900 of related interest on Jamboree’s behalf. This transaction was not
recorded by Jamboree prior to receiving the statement.
g. A debit memorandum for $1,100 lists a $1,100 NSF check received from a customer,
Marilyn Welch. Jamboree had not recorded the return of this check before receiving the
statement.
h. Bank service charges for November total $40. These charges were not recorded by Jamboree
before receiving the statement.
Financial
12
Solution
Bank reconcliation
Cash balance per bank
38520 Cash balance per book
16380
Add
Add
Deposit in transit
17150 Collection of note
Bank error ‫ النه خصم مني مبلغ مش بتاعي‬160
Interest revenue
30,000
900
Deduct
Outstanding checks
#2024
#2026
Deduct
NSF (account receivable)
(4810) Service chrage
(5000) Error in rent (1000 -880)
(1,100)
(40)
(120)
Adjusted cash balance
46020 Adjusted cash balance
46020
b) journal entry
Dr
‫التسجيل عند الشركه‬
‫فقط‬
Cash
Note receivable
Interest revenue
Account receivable – NSF
Bank service expense
Error in rent
Cash
Cr
30,900
30,000
900
1,100
40
120
1260
Financial
13
The following information is available to reconcile Severino’s Co. book balance of cash with its
bank statement cash balance as of December 31, 2017
a. The December 31 cash balance according to the accounting records is $32878.30 and the
bank statement cash balance for that date is $46,822.40
b. Checks No. 1273 for $4,589.30 and check No. 1282 for $400, both written and entered in
the accounting records in December, are not among the cancelled checks. Two checks
No. 1231 for $2289 and No. 410.40, were outstanding on the most recent November 30
reconciliation. Check No. 1231 is listed in the December canceled checks.
c. When the December checks are compared with entries in the accounting records, it is
found that check No. 1267 had been correctly drawn for $3456 to pay office supplies but
was erroneously entered in the accounting records as $3,465
d. Two memoranda are enclosed with the statement and are unrecorded at the time of the
reconciliation. The first is for $762.50 that dealt with an NSF check ($745 NSF check
from customer and $17.50 fees for processing it). The second $99 in miscellaneous
expense for check printing.
e. The bank statement shows that the bank collected $19000 cash on note receivable for the
company, deducted $20 collection fees.
f. Severino’s company December 31 daily cash receipts of $9583.10 were placed in the
bank’s night depository on that date but not appear on the December bank statement.
Financial
14
Solution
Bank reconcliation
Cash balance per bank
46,822.40 Cash balance per book
Add
Collection of note
Error in supplies (3465 -3456)
32,878.30
Add
Deposit in transit
9,583.10
Deduct
Outstanding checks
# 1273
#1282
#1242
Deduct
(4,589.30) NSF (account receivable)
(400)
Printing check
(410.40)
Collection fess
(762.5)
(99)
(20)
Adjusted cash balance
51005.8
51005.8
Adjusted cash balance
19,000
9
b) journal entry
Dr
‫التسجيل عند الشركه‬
‫فقط‬
Cash
Note receivable
Error in supplies
Account receivable – NSF
Printing checks expense
Collection fees expense
Cash
Cr
19,009
19,000
9
762.5
99
20
881.5