Question

TRUE/FALSE

1. _____ On a bank reconciliation, deposits in transit are subtracted on the book side of the reconciliation.

2. _____ Journal entries are made to record the reconciling items on the bank side of the reconciliation.

MULTIPLE CHOICE

3. _____ Which of the following will NOT appear as a deduction or addition to the general ledger balance on the bank reconciliation?

A. the bank collected a note receivable of $1,000

B. a nonsufficient funds check of $75 returned to the bank

C. the bank charged a service fee of $20

D. the bank recorded a $2,000 deposit as $200

4. _____ A check of $75 deposited by a company was returned to the bank for nonsufficient funds (NSF). How would this information be included on the bank reconciliation?

A. Added to the balance per bank statement

B. Added to the balance per general ledger

C. Deducted from the balance per bank statement

D. Deducted from the balance per general ledger

5. _____ The bank charged a service fee of $20. How would this information be included on the bank reconciliation?

A. Added to the balance per bank statement

B. Added to the balance per general ledger

C. Deducted from the balance per bank statement

D. Deducted from the balance per general ledger

6. _____ A company received a bank statement showing a balance of $12,300. Reconciling items were outstanding checks of $650, a deposit in transit of $1,200, and a service charge of $50. What is the company’s reconciled cash balance?

A. $10,400

B. $12,850

C. $14,200

D. $12,800

 



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