Exam 9: Cash Receipts, Cash Payments, and Banking Procedures

The entry in a firm's accounting records for the monthly service charge by the bank noted on the bank statement would include:

Amounts that appear in the Other Accounts Credit section of the cash receipts journal require individual posting to the general ledger.

On December 31, 2019, Designer's Warehouse received a bank statement with an ending balance of $19,500. The balance in the firm's checkbook and Cash account on the same date was $20,580. The difference between the two balances is caused by the items listed below. -A $5,750 deposit made on December 30 does not appear on the bank statement. -Check 1312 for $970 issued on November 29 and Check 1375 for $3,300 issued on December 30 have not yet been paid by the bank. -A credit memorandum shows that the bank has collected a $2,200 note receivable and interest of $220 for the firm. -A service charge of $50 appears on the bank statement. -A debit memorandum shows an NSF check for $1,050. (The check was issued by R. Donnelley, a credit customer.) -The firm's records indicate that Check 1316 of December 1 was issued for $1,800 to pay the month's rent. However, the canceled check and the listing on the bank statement show that the actual amount of the check was $1,600. -The bank made an error by deducting a check for $1,120 issued by another business from the balance of the account of Designer's Warehouse. Instructions: 1. Prepare a bank reconciliation statement for the firm as of December 31, 2019 2. Record entries for any items on the bank reconciliation statement that must be journalized. Date the entries December 31, 2019. Use page 19 of a general journal.

A(n)________ is a written promise to pay a specified amount of money at a specified time.

After a bank reconciliation statement is completed, a firm may have to make an entry in its accounting records for:

Upon collection of the amount due on an interest-bearing promissory note from a customer, the accountant would debit Cash, credit Notes Receivable, and:

If a check written by a firm is not canceled by the bank, the firm should:

Which of the following statements is correct?

Read each of the following transactions. Determine the accounts to be debited and credited. A)Collected cash in settlement of a $600 promissory note plus interest of $18. B)Jaime Gomez, the owner, made an additional cash investment of $11,000. C)Sold merchandise for $3,000 in cash plus sales tax of $210. There was a cash overage of $4.

The entry to replenish a petty cash fund includes:

After totaling the receipts in the petty cash box, Kelly Garrett Detective Agency spent $65 on Office Supplies and $145 on Auto Expense. The journal entry to record the reimbursement to the petty cash fund would include:

The cash payments journal for Excel Company is shown below. Describe how the amounts would be posted to the general ledger accounts.

The individual amounts in the Accounts Payable Debit column of the cash payments journal are posted to the accounts payable subsidiary ledger.

The entry to record the issuance of a check in settlement of an interest-bearing promissory note of $4,000 and interest of $100, would be to:

While reconciling the bank statement, it is noted that the bank deducted a check written by another depositor. On a bank reconciliation statement this error would be shown as:

Identify the procedure below that is NOT essential for proper control over cash receipts.

If the amount of cash available for deposit is less than the amount listed on the audit tape taken from the cash register, the Cash Short or Over account is________.

The monthly bank statement should be received and reconciled by the same employee who deposits cash receipts and writes the checks.

To transfer ownership of a check from one party to another, it is necessary to ________ the check.

Match the accounting terms with the description by entering the proper letter in the space provided. A. Bank reconciliation statement P. Drawee B. Blank endorsement Q. Drawer C. Bonding R. Endorsement D. Canceled check S. Full endorsement E. Cash T. Negotiable F. Cash payments journal U. Outstanding checks G. Cash receipts journal V. Payee H. Cash register proof W. Petty cash analysis sheet I. Cash Short or Over account X. Petty cash fund J. Check Y. Petty cash voucher K. Credit memorandum Z. Postdated check L. Debit memorandum AA. Promissory note M. Deposit in transit BB. Restrictive endorsement N. Deposit slip CC. Service charge O. Dishonored check DD. Statement of account ________ 1. The bank on which a check is written 2. A form that explains any addition, other than a deposit, to a checking account ________ 3. A form that explains any deduction, other than a check, from a checking account 4. A signature transferring a check to a specific person, firm, or bank ________ 5. In accounting, currency, coins, checks, money orders, and funds on deposit in a bank ________ 6. A check returned to the depositor unpaid because of insufficient funds in the drawer's account; also called an NSF check 54 7. A deposit that is recorded in the cash receipts journal but that reaches the bank too late to be shown on the monthly bank statement ________ 8. A form prepared to record the deposit of cash or checks to a bank account 9. A statement that accounts for all differences between the balance on the bank statement and the book balance of cash ________ 10. A fee charged by a bank to cover the costs of maintaining accounts and providing services ________ 11. A special-purpose fund used to handle payments involving small amounts of money ________ 12. A signature of the payee written on the back of the check that transfers ownership of the check without specifying to whom or for what purpose ________ 13. A financial instrument whose ownership can be transferred to another person or business ________ 14. Checks that have been recorded in the cash payments journal but have not yet been paid by the bank ________ 15. A signature that transfers a check to a specific party for a stated purpose