Exam 5: Internal Control and Cash

The bank statement of Jade Co.shows a balance of $4,555 as of December 31.The following reconciling items were identified: i) Deposit not recorded on bank statement, $50 Ii) Total outstanding checks, $105 Iii) Check of $100 returned because of not sufficient funds (NSF)What is the adjusted balance according to the bank statement?

The bank section begins with the cash balance according to the bank statement and ends with the adjusted balance.

A canceled check for $1,900 was erroneously recorded by the bank as $9,100.How is the error adjusted in a bank reconciliation?

A credit memorandum from the bank :

XYZ Co.'s petty cash receipts indicate the following expenditures for the end of October: Office supplies \ 490 Miscellaneous selling expense \ 300 Miscellaneous administrative expense \ 120 These transactions would result in a:

In preparing a bank reconciliation, the amount of deposits in transit is deducted from the cash balance per bank.

List the advantages of Electronic Funds Transfers.

MMC Inc.recorded the receipt from cash sales of $2,600 as $6,200.This error is adjusted on the bank reconciliation as a(n):