Exam 6: Banking Procedure and Control of Cash

Determine the unadjusted balance per bank statement given the following: The balance per general ledger is $210 There is a credit memo for a note collected,$450 There is a debit memo for interest expense,$100 There is a debit memo for a customer's NSF check $375 Outstanding checks amount to $2,000 This month's service charge amounts to $50 Deposits in transit amount to $1,500 $ ________

Indicate which effect(s)each situation will have: 1.New check written 2.Recorded in the general journal 3.Recorded in auxiliary petty cash record 4.Petty cash voucher prepared -________ Owner withdrew money from the company for personal use

Outstanding checks:

Which of the following accounts would most likely be debited in the replenishment of petty cash?

The entry to establish the petty cash fund was not completed.This would cause:

The entry to establish the petty cash fund debited Misc.Expense.This would cause:

Using correct cash handling procedures,deposits should be made by the end of the week.

On a bank reconciliation,outstanding checks are deducted from the balance per books.

Prepare a bank reconciliation from the following information: A. Palance per bark statement of Febuary \4 ,325 B. Checkbook balance 4,750 C. Collection of note by bank 500 D. Service charges 110 E. Deposit in transit 2,140 F. Outstanding checks 1,325

Which of the following transactions would most likely not be recorded in an auxiliary petty cash record?

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary). Example: Column 1 Column 2 Column 3 Column 4 Cash Asset Debit Balance Sheet Permanent - Column 1 Column 2 Column 3 Column 4 Delivery Expense

From the bank reconciliation no entry was recorded for deposits in transit.This would cause:

The entry to replenish the petty cash fund debited Insurance Expense for postage.This would cause:

An example of an internal control is:

The first two numbers of the ABA code listed on the check represent:

Which of the following transactions would be recorded in an auxiliary petty cash record?

The journal entry to reverse the entry of a customer's nonsufficient funds check would include a:

Determine the adjusted cash balance per bank for Santa's Packaging on November 30,from the following information: Cash balance on the bank statement \ 2,350 Customer's check returned-NSF 500 Customer's note collected by the bank 600 Deposits in transit, November 30 1,400 Outstanding checks, November 30 2,650

The bank would issue a credit memorandum to Maria's Life Management when the bank:

A bank service charge would be included on the bank reconciliation as a(n):