96. Regarding a bank reconciliation, which one of the following is an item recorded by the company but not by the bank?
a. Checks outstanding.
b. Interest earned.
c. Service charges.
d. NSF checks.
97. Which of the following would NOT need to be accounted for in a bank reconciliation?
a. Deposits outstanding recorded by the company but not the bank.
b. Interest earned recorded by the bank but not the company.
c. NSF checks recorded by the bank but not by the company.
d. Checks written by the company and recorded by the bank.
98. 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 $2,250
Deposits outstanding 1,900
NSF check 100
Service fees 40
Error: Money Corp. wrote a check for $30 but recorded it incorrectly 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.
99. Cash transactions recorded by the bank but not yet recorded by the company include all of the following except
a. Service fees.
b. Interest earned.
c. Checks outstanding.
d. NSF checks.
100. The following information was taken from the bank reconciliation for Mooner Sooner Inc. at the end of the year:
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 the year?
a. $10,200.
b. $7,400.
c. $6,200.
d. $6,160.
101. Cash transactions that have been recorded by the company but not the bank include:
a. NSF checks.
b. Interest earned.
c. Service fees.
d. Deposits outstanding.
102. Which of the following is NOT a reason why a bank reconciliation is necessary?
a. The company has transactions that the bank has not recorded.
b. Petty cash has a low balance.
c. The bank has transactions that the company has not recorded.
d. Reconciliations provide a control over cash.
103. Which of the following is correct with respect to a bank reconciliation?
a. Subtract interest earned from the bank’s balance.
b. Add service charge to the company’s balance.
c. Subtract NSF checks from the company’s balance.
d. Add deposits outstanding to the company’s balance.
104. After preparing a bank reconciliation, the collection of a note by the bank on a company’s behalf would be recorded with a:
a. Credit to Notes Receivable.
b. Credit to Cash.
c. Debit to Notes Receivable.
d. Credit to Accounts Receivable.
105. After preparing a bank reconciliation, the service fee charged by the bank would be recorded with a:
a. Credit to Service Fees Expense.
b. Debit to Cash.
c. Credit to Service Fees Revenue.
d. Debit to Service Fees Expense.