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

A check issued for $890 to pay a vendor on account was recorded in the firm's records as $980; the canceled check was properly listed on the bank statement at $890. To arrive at an accurate balance on a bank reconciliation statement, the error should be:

When a bank deducts any amount other than a paid check or electronic payment from a depositor's account, it issues a form called a(n)________memorandum.

If a firm's bank reconciliation statement shows a bank statement balance of $16,200, total deposits in transit of $1,800, and total outstanding checks of $1,200, the adjusted bank balance is ________.

To arrive at an accurate balance on a bank reconciliation statement, deposits in transit should be:

Indicate in which section of the Bank Reconciliation Statement the following reconciling items would appear. - A check written by Bosley Co. for $186 was mistakenly recorded in the company records as $168.

Read each of the following transactions. Determine the accounts to be debited and credited. A)Sold merchandise for $200 in cash plus sales tax of $14. B)Collected $3,400 from credit customers on account. C)Sold merchandise for $1,600 in cash plus sales tax of $112. There was a cash shortage of $6.

A check for $2,560 to pay a vendor on account was recorded in the firm's records as $2,650; the canceled check was properly listed on the bank statement at $2,560. To arrive at an accurate balance on a bank reconciliation statement:

Merchandise is sold for $5,600, terms 1/10, n/30. Prior to payment, the customer returned $360 of the merchandise. If the invoice is paid within the discount period the amount of the sales discount is:

Record the following transactions for the month of June 2019 on page 23 of a cash receipts journal. Total, prove, and rule the cash receipts journal as of June 30. June 4 Collected $850 from Tom Whitney, a credit customer on account. 9 Received a cash refund of $60 for damaged supplies. 10 Laurie Bradley, the owner, invested an additional $10,000 cash in the business. 21 Received a check from Scott White to pay his $2,400 promissory note plus interest of $140. 26 Received $1,700 for cash sales of plus sales tax of $119. There was a cash overage of $5.

Cash Short or Over is an expense account when it has a debit balance.

A firm wrote a check for $78 but entered the amount as payment of $87 in its records. On a bank reconciliation statement this error would be shown as:

Record the following transactions for the month of April, 2019 on page 4 of a cash receipts journal. Total, prove, and rule the cash receipts journal as of April 30. April 3 Collected $350 from Margo Daub, a credit customer on account. 1 Kevin Sharp, the owner, invested an additional $5,000 cash in the business. 2 Received a cash refund of $30 for damaged supplies. 15 Had cash sales of $5,500 plus sales tax of $385. There was a cash overage of $5. 18 Received $800 from Brian Cobb, a credit customer, in payment of his account. 20 Received a check from Phil Stout to pay his $700 promissory note plus interest of $42. 30 Had cash sales of $3,800 plus sales tax of $266. There was a cash shortage of $5.

No end-of-month posting is required for the total of the Other Accounts Debit column of the cash payments journal.

Merchandise costing $5,600 with terms of 1/10, n/30, with transportation costs of $320 included on the invoice (not included in the $5,600)is sold on account. If the bill is paid within ten days, the amount of the purchase discount is:

A firm's bank reconciliation statement shows a book balance of $21,640, an NSF check of $800, and a service charge of $50. Its adjusted book balance is:

The cash receipts journal for Carlson Company is shown below. Describe how the amounts would be posted to the accounts receivable subsidiary ledger accounts.

Phones R Us uses a perpetual inventory system when recording its cash payments and cash receipts. In June, the business purchases $5,000 of goods on account with terms of 2/10, n/30. Select the correct entry to record the payment of the goods within the discount period.

Which of the following statements is NOT correct?

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