Financial Accounting
3rd Edition
ISBN: 9780133791129
Author: Jane L. Reimers
Publisher: Pearson Higher Ed
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Question
Chapter 4, Problem 1MCQ
To determine
Identify the true cash balance at the end of the month.
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The following data pertaining to the cash transactions and bank account of Ella Company for the month of
May are available to you:
Cash balance, per records, May 31
15,000
Cash balance, per bank statement, 5/31
30,000
Bank service charge for May
100
Debit memo for the cost of printed checks delivered by the bank
100
Outstanding checks, May 31
7,000
Deposit of May 30 not recorded by bank until June 1
4,500
Proceeds of a bank loan of May 30, net of interest of P300
5,000
Proceeds from a customer's promissory note, including interest of
P100
8,000
Check No. 2772 issued to a supplier entered in the accounting
records at P2,150 but the bank statement at an erroneous amount
of deducted in
900
Stolen check lacking an authorized signature, deducted from Ella's
account by the bank in error
800
Customer's check returned by the bank marked NSF; no entry has
been made in the records to record the returned check accounting
750
What is the correct cash balance at May 31?
Using the following information:
The bank statement balance is $5,002.
The cash account balance is $5,487.
Outstanding checks amounted to $722.
Deposits in transit are $1,178.
The bank service charge is $20.
A check for $69 for supplies was recorded as $60 in the ledger.
Prepare a bank reconciliation for Candace Co. for May 31.
Candace Co.Bank ReconciliationMay 31
Cash balance according to bank statement
$fill in the blank 1
Adjustments:
$- Select -
- Select -
Total adjustments
fill in the blank 6
Adjusted balance
$fill in the blank 7
Cash balance according to company's records
$fill in the blank 8
Adjustments:
$- Select -
- Select -
Total adjustments
fill in the blank 13
Adjusted balance
$fill in the blank 14
The following information is needed to reconcile the cash balance for Discount Dry Cleaning, Inc.
*A deposit of $5,700 is in transit.
* Outstanding checks total $1,000.
* The book balance is $6,400 at February 28, 2025.
The bookkeeper recorded a $1,500 check as $17,100 in payment of the current month's rent.
* The bank balance at February 28, 2025 was $18,410.
* A deposit of $500 was credited by the bank for $5,000.
* A customer's check for $3,300 was returned for nonsufficient funds.
* The bank service charge is $90.
What was the adjusted book balance?
A. $18,500
B. $18,610
C. $18,700
D. $18,790
Chapter 4 Solutions
Financial Accounting
Ch. 4 - Prob. 1YTCh. 4 - Prob. 2YTCh. 4 - Suppose at the end of the year Pendleton Corp.s...Ch. 4 - Prob. 4YTCh. 4 - Prob. 5YTCh. 4 - Prob. 6YTCh. 4 - Prob. 7YTCh. 4 - Prob. 1QCh. 4 - Prob. 2QCh. 4 - Prob. 3Q
Ch. 4 - Prob. 4QCh. 4 - What does true cash balance refer to?Ch. 4 - Identify and explain the financial statements on...Ch. 4 - Describe how accounts receivable arise. What does...Ch. 4 - Prob. 8QCh. 4 - Define net realizable value, book value, and...Ch. 4 - Explain the difference between the direct...Ch. 4 - If a company uses the allowance method of...Ch. 4 - Describe the two allowance methods used to...Ch. 4 - Which method of calculating the allowance for...Ch. 4 - Which method of calculating the allowance for...Ch. 4 - What are the advantages and disadvantages of...Ch. 4 - What is the difference between accounts receivable...Ch. 4 - What is the formula to calculate the accounts...Ch. 4 - How does a firm use its accounts receivable...Ch. 4 - Prob. 19QCh. 4 - Prob. 20QCh. 4 - Prob. 1MCQCh. 4 - Prob. 2MCQCh. 4 - Prob. 3MCQCh. 4 - Prob. 4MCQCh. 4 - Prob. 5MCQCh. 4 - Prob. 6MCQCh. 4 - Prob. 7MCQCh. 4 - Prob. 8MCQCh. 4 - Prob. 9MCQCh. 4 - Prob. 1SEACh. 4 - Prob. 2SEACh. 4 - Prob. 3SEACh. 4 - Prob. 4SEACh. 4 - Prob. 5SEACh. 4 - Prob. 6SEACh. 4 - Prob. 7SEACh. 4 - Prob. 8SEACh. 4 - Prob. 9SEACh. 4 - Prob. 10SEBCh. 4 - Prob. 11SEBCh. 4 - Prob. 12SEBCh. 4 - Prob. 13SEBCh. 4 - Prob. 14SEBCh. 4 - Prob. 15SEBCh. 4 - Prob. 16SEBCh. 4 - Prob. 17SEBCh. 4 - Prob. 18SEBCh. 4 - Prob. 19EACh. 4 - Prob. 20EACh. 4 - Prob. 21EACh. 4 - Prob. 22EACh. 4 - Prob. 23EACh. 4 - Prob. 24EACh. 4 - Prob. 25EACh. 4 - Prob. 26EACh. 4 - Prob. 27EACh. 4 - Prob. 28EACh. 4 - Prob. 29EACh. 4 - Prob. 30EACh. 4 - Prob. 31EACh. 4 - Prob. 32EBCh. 4 - Prob. 33EBCh. 4 - Prob. 34EBCh. 4 - Prob. 35EBCh. 4 - Prob. 36EBCh. 4 - Prob. 37EBCh. 4 - Prob. 38EBCh. 4 - Prob. 39EBCh. 4 - Prob. 40EBCh. 4 - Prob. 41EBCh. 4 - Prob. 42EBCh. 4 - Prob. 43EBCh. 4 - Prob. 44EBCh. 4 - Prob. 45PACh. 4 - Prob. 46PACh. 4 - Prob. 47PACh. 4 - Prob. 48PACh. 4 - Prob. 49PACh. 4 - Prob. 50PACh. 4 - Prob. 51PACh. 4 - Prob. 52PACh. 4 - Prob. 53PBCh. 4 - Prob. 54PBCh. 4 - Prob. 55PBCh. 4 - Prob. 56PBCh. 4 - Prob. 57PBCh. 4 - Prob. 58PBCh. 4 - Prob. 59PBCh. 4 - Prob. 60PBCh. 4 - Prob. 1FSACh. 4 - Prob. 2FSACh. 4 - The following information has been adapted from...Ch. 4 - Prob. 1CTPCh. 4 - Prob. 2CTPCh. 4 - The information given here was taken from Yahoo!...Ch. 4 - Prob. 1IECh. 4 - Prob. 2IECh. 4 - The information given here was taken from Yahoo!...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- What is the journal entry to record an NSF check, from J. Smith for 250, that is returned with the bank statement? a. Cash 250 DR; NSF Check 250 CR b. Accounts Receivable 250 DR; Cash 250 CR c. NSF Check 250 DR; Accounts Receivable 250 CR d. Cash 250 DR; Accounts Receivable 250 CR e. Cash 250 DR; Miscellaneous Expense 250 DRarrow_forwardCatherines Cookies has a beginning balance in the Accounts Payable control total account of $8,200. In the cash disbursements journal, the Accounts Payable column has total debits of $6,800 for November. The Accounts Payable credit column in the purchases journal reveals a total of $10,500 for the current month. Based on this information, what is the ending balance in the Accounts Payable account in the general ledger?arrow_forwardAt April 30, Mazaya Company Has the following bank information: cash balance per book $7200; outstanding checks $560; deposits in transit $1100; credit memo for interest $20; bank service charge $40. What is Mazaya's Adjusted cash balance on April 30?arrow_forward
- At November 30, One Day Cleaners has available the following data concerning its bank checking account: PROBLEM 7A-2 Preparing a Bank Reconcil- 1 At November 30, cash per the bank statement was $37,758; per the accounting records, $42,500. lation 2 The cash receipts of $6,244 on November 30 were deposited on December 1. 3 Included on the bank statement was a credit for $167 interest earned on this checking account during November. 4 Two checks were outstanding at November 30: no. 921 for $964 and no. 925 for $1,085. 5 Enclosed with the bank statement were two debit memoranda for the following items: service charge for November, $14; and a $700 check of customer Tanya Miller, marked "NSF." INSTRUCTIONS a Prepare a bank reconciliation at November 30. b Prepare adjusting entries (in general journal form) based on the bank reconcili- ation.arrow_forwardUsing the following information: The bank statement balance is $5,289. The cash account balance is $5,764. Outstanding checks amounted to $751. Deposits in transit are $1,174. The bank service charge is $43. A check for $71 for supplies was recorded as $62 in the ledger. Prepare a bank reconciliation for Candace Co. for May 31. Candace Co.Bank ReconciliationMay 31 Cash balance according to bank statement $fill in the blank 1 Adjustments: $fill in the blank 3 fill in the blank 5 Total adjustments fill in the blank 6 Adjusted balance $fill in the blank 7 Cash balance according to company's records $fill in the blank 8 Adjustments: $fill in the blank 10 fill in the blank 12 Total adjustments fill in the blank 13 Adjusted balance $fill in the blank 14arrow_forwardAt April 30, Kessler Company has the following bank information: Cash balance per bank $6,900 Outstanding checks $420 Deposits in transit $825 Credit memo for interest $15 Bank service charge $30 What is Kessler's adjusted cash balance on April 30?arrow_forward
- Using the following information: a. The bank statement balance is $4,340. b. The cash account balance is $4,999. c. Outstanding checks amount to $607. d. Deposits in transit are $1,197. e. The bank service charge is $60. f. A check for $36 for supplies was recorded as $27 in the ledger. Prepare a bank reconciliation for Candace Co. for May 31. Line Item Description Cash balance according to bank statement Candace Co. Bank Reconciliation May 31 Adjusted balance Cash balance according to company's records Total deductions Adjusted balance Amount Amount $arrow_forwardQuestion. At April 30, Kessler Company has the following bank information: Cash balance per bank $6,900Outstanding checks $420Deposits in transit $825Credit memo for interest $15Bank service charge $30 What is Kessler's adjusted cash balance on April 30?arrow_forward
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