86.Which of the following transactions will appear in the bank statement but generally not have been recorded by the depositor?
A. Outstanding checks.
B. Service charges.
C. Deposits in transit.
D. Both outstanding checks and deposits in transit.
87.Which of the following items would cause cash per the bank statement to be smaller than the balance of cash shown in the accounting records?
A. Outstanding checks.
B. Interest earned on the average balance of the checking account.
C. Check no. 824, in the amount of $620.30, is recorded by the bank as $602.30.
D. Deposits in transit.
88.Which of the following items would cause cash per the bank statement to be larger than the balance of cash shown in the accounting records?
A. Bank service charges.
B. Deposits in transit.
C. Outstanding checks.
D. NSF check from one of the depositor's customers.
89.In preparing the bank reconciliation, certain transactions recorded by the depositor may not have been recorded by the bank. Which of the following is an example of this type of transaction?
A. Service charges.
B. Outstanding checks.
C. Credit for interest earned.
D. Charges for NSF checks.
90.When reading a bank statement, which reference indicates an increase in the cash balance?
A. Debit Memorandum.
B. Credit Memorandum.
C. NSF Check.
D. Service Charge.
91.While preparing the bank reconciliation, an accountant discovered that a $426 check returned with the bank statement had been recorded erroneously in the depositor's accounting records as $462. In preparing the bank reconciliation the appropriate action to correct this error would be to:
A. Add $36 to the balance per the depositor's records.
B. Add $36 to the balance per the bank statement.
C. Deduct $36 from the balance per the bank statement.
D. Deduct $36 from the balance per the depositor's records.
92.The accounting records of Golden Company showed cash of $15,250 at June 30. The balance per the bank statement at June 30 was $15,125. The only reconciling items were deposits in transit of $3,200, outstanding checks totaling $4,100, an NSF check for $1,000 returned by the bank which Golden had not yet charged back to the customer, and a bank service charge of $25. The preparation of the bank reconciliation should indicate that Golden's adjusted cash balance at June 30 is:
A. $14,475.
B. $15,375.
C. $14,225.
D. $15,525.
93.A bank statement shows a balance of $8,445 at June 30. The bank reconciliation is prepared and includes outstanding checks of $2,790, deposits in transit of $1,350, and a bank service charge of $30. Among the paid checks returned by the bank was check no. 900 in the amount of $600, which the company had erroneously recorded in the accounting records as $60. The "adjusted cash balance" at June 30 is:
A. $6,975.
B. $6,465.
C. $7,005.
D. $7,575.
The Cash account in the ledger of Hensley, Inc. showed a balance of $3,100 at June 30. The bank statement, however, showed a balance of $3,900 at the same date. The only reconciling items consisted of a $700 deposit in transit, a bank service charge of $7, and a large number of outstanding checks.
94.Refer to the information above. What is the "adjusted cash balance" at June 30?
A. $3,900.
B. $3,093.
C. $7,600.
D. $2,400.
95.Refer to the information above. What is the total amount of the outstanding checks at June 30?
A. $1,513.
B. $1,486.
C. $1,507.
D. $1,500.