116.The cash account shows a balance of $75,000 before reconciliation. The bank statement does not include a deposit of $4,600 made on the last day of the month. The bank statement shows a collection by the bank of $1,880 and a customer’s check for $640 was returned because it was NSF. A customer’s check for $790 was recorded on the books as $970, and a check written for $159 was recorded as $195. The correct balance in the cash account was
a.$76,024.
b.$76,096.
c.$76,456.
d.$80,696.
117.If the month-end bank statement shows a balance of $90,000, outstanding checks are $30,000, a deposit of $10,000 was in transit at month end, and a check for $1,250 was erroneously charged by the bank against the account, the correct balance in the bank account at month end is
a.$68,750.
b.$71,250.
c.$51,250.
d.$108,750.
118.In preparing its bank reconciliation for the month of April 2014, Gantner, Inc. has the following information available.
Balance per bank statement, 4/30/14$73,280
NSF check returned with 4/30/14 bank statement900
Deposits in transit, 4/30/1410,000
Outstanding checks, 4/30/1410,400
Bank service charges for April40
What should be the adjusted cash balance at April 30, 2014?
a.$73,740.
b.$72,880.
c.$71,980.
d.$71,940.
119.In preparing its August 31, 2014 bank reconciliation, Acme Corp. has the following information available.
Balance per bank statement, 8/31/14$19,650
Deposit in transit, 8/31/143,900
Return of customer’s check not sufficient funds, 8/30/14600
Outstanding checks, 8/31/142,750
Bank service charges for August100
At August 31, 2014, Acme’s adjusted cash balance is
a.$20,800.
b.$20,200.
c.$20,100.
d.$18,500.
120.Tyler, Inc. had the following bank reconciliation at March 31, 2014:
Balance per bank statement, 3/31/14€37,200
Add: Deposit in transit 10,300
47,500
Less: Outstanding checks 12,600
Balance per books, 3/31/14€34,900
Data per bank for the month of April 2014 follow:
Deposits€44,700
Disbursements49,700
All reconciling items at March 31, 2014 cleared the bank in April. Outstanding checks at April 30, 2014 totaled €6,000. There were no deposits in transit at April 30, 2014. What is the cash balance per books at April 30, 2014?
a.€26,200
b.€29,900
c.€32,200
d.€36,500
121.On a bank reconciliation, deposits in transit are
a.added to the bank balance.
b.deducted from the bank balance.
c.added to the book balance.
d.deducted from the book balance.
122.A bank reconciliation should be prepared
a.whenever the bank refuses to lend the company money.
b.when an employee is suspected of fraud.
c.to explain any difference between the depositor's balance per books and the balance per bank.
d.by the person who is authorized to sign checks.
123.Deposits in transit
a.have been recorded on the company's books but not yet by the bank.
b.have been recorded by the bank but not yet by the company.
c.have not been recorded by the bank or the company.
d.are checks from customers which have not yet been received by the company.
124.In preparing a bank reconciliation, outstanding checks are
a.added to the balance per bank.
b.deducted from the balance per books.
c.added to the balance per books.
d.deducted from the balance per bank.
125.If a check correctly written and paid by the bank for $517 is incorrectly recorded on the company's books for $571, the appropriate treatment on the bank reconciliation would be to
a.add $54 to the bank's balance.
b.add $54 to the book's balance.
c.deduct $54 from the bank's balance.
d.deduct $517 from the book's balance.