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# Financial accounting question?

June 25, 2019 / By Bailie
Question: 1 The following information was taken from the bank reconciliation for Mooner Sooner Inc. at the end of 2012: Bank balance: \$8,000 Checks outstanding: \$5,800 Note collected by the bank: \$1,500 Service fee: \$20 Deposits outstanding: \$4,000 NSF check (bad check) returned for \$300 What is the correct cash balance that should be reported in Mooner Sooner's balance sheet at the end of 2012? a \$10,200. b \$7,400. c \$6,200. d \$6,160. 2 On May 31, Money Corporation's Cash account showed a balance of \$10,000 before the bank reconciliation was prepared. After examining the May bank statement and items included with it, the company's accountant found the following items: checks outstanding \$2250 deposits outstanding \$1900 nsf check \$ 100 service fees \$ 40 error: money corp wrote a check for \$30 but recorded it incorredtly for \$300 What is the amount of cash that should be reported in the company's balance sheet as of May 31? a \$9,860. b \$9,650. c \$10,130. d \$10,410. 3 A company's general ledger shows a cash balance of \$4,570. Comparing the company's cash records with the monthly bank statement reveals several additional cash transactions such as checks outstanding of \$2,840, bank service fees of \$110, and interest earned of \$15. Calculate the correct balance of cash. 4. A company's Cash account shows a balance of \$3,450 at the end of the month. Comparing the company's Cash account with the monthly bank statement reveals several additional cash transactions such as bank service fees (\$50), an NSF check from a customer (\$300), a customer's note receivable collected by the bank (\$1,000), and interest earned (\$100). Prepare the necessary entries to adjust the balance of cash. 5. At the time a \$400 petty cash fund is being replenished, the company's accountant finds vouchers totaling \$350 and petty cash of \$50. The vouchers include: postage, \$100; business lunches, \$150; delivery fees, \$75; and office supplies, \$25. Which of the following is not recorded when recognizing expenditures from the petty cash fund? a Debit Postage Expense, \$100. b Debit Supplies, \$25. c Credit Petty Cash, \$350. d Debit Petty Cash, \$350. 6 The following data were obtained from the bank statement and from the process of reconciling it: Bank service charges = \$20 Deposit outstanding = \$150 Interest earned on the bank account = \$10 Checks outstanding = \$400 Which items should be deducted from and added to the bank balance in completing the reconciliation? a Deduct checks outstanding; add service charges and deposit outstanding. b Deduct interest earned; add deposit outstanding. c Deduct checks outstanding; add deposit outstanding. d Deduct deposit outstanding; add checks outstanding.

## Best Answers: Financial accounting question?

1 The following information was taken from the bank reconciliation for Mooner Sooner Inc. at the end of 2012: Bank balance: \$8,000 less Checks outstanding: \$5,800 add Deposits outstanding: \$4,000 = correct cash balance \$6,200 Answer: c \$6,200 2 On May 31, Money Corporation's Cash account showed a balance of \$10,000 before the bank reconciliation was prepared. After examining the May bank statement and items included with it, the company's accountant found the following items: Cash account balance \$10,000 less nsf check \$ 100 less service fees \$ 40 add error correction \$270 = amount of cash that should be reported in the company's balance sheet as of May 31 \$10,130 Answer: c \$10,130. 3 A company's general ledger shows a cash balance of \$4,570. Comparing the company's cash records with the monthly bank statement reveals several additional cash transactions such as checks outstanding of \$2,840, bank service fees of \$110, and interest earned of \$15. Cash balance \$4,570 less bank service fees \$110 add interest earned \$15 = correct balance of cash \$4,475 4. A company's Cash account shows a balance of \$3,450 at the end of the month. Comparing the company's Cash account with the monthly bank statement reveals several additional cash transactions such as bank service fees (\$50), an NSF check from a customer (\$300), a customer's note receivable collected by the bank (\$1,000), and interest earned (\$100). Prepare the necessary entries to adjust the balance of cash. Cash account balance \$3,450 less bank service fees \$50 less NSF check from a customer \$300 add note receivable \$1,000 add interest earned \$100 = adjusted cash balance \$4,200 Dr Bank charges/miscellaneous expenses \$50 Cr Cash \$50 Dr AR 300 Cr Cash 300 Dr Cash 1,000 Cr Note receivable 1,000 Dr Cash 100 Cr Interest income 100 5. At the time a \$400 petty cash fund is being replenished, the company's accountant finds vouchers totaling \$350 and petty cash of \$50. The vouchers include: postage, \$100; business lunches, \$150; delivery fees, \$75; and office supplies, \$25. Which of the following is not recorded when recognizing expenditures from the petty cash fund? d Debit Petty Cash, \$350 6 The following data were obtained from the bank statement and from the process of reconciling it: Bank service charges = \$20 Deposit outstanding = \$150 Interest earned on the bank account = \$10 Checks outstanding = \$400 Which items should be deducted from and added to the bank balance in completing the reconciliation? c Deduct checks outstanding; add deposit outstanding.
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