ACCTG201 -CH4 Review

ACCTG201 - CH4 Review

Multiple Choice

Record Cash Expenditures: Pay employee salaries of $430 by issuing checks.

• Credit Salaries Expense, debit Cash

• Debit Cash, credit Salaries Expense
• Debit Salaries Expense, credit Cash

• Debit Salaries Expense, credit Accounts Payable

Multiple Choice

Record Cash Expenditures: Purchase computer equipment of $830 using a credit card.

• Debit Equipment and Credit Cash

• Debit Equipment and Credit Accounts Payable

• Debit Computer Equipment and Credit Card Payable

• Debit Cash and Credit Equipment

Multiple Choice

Record Cash Expenditures: Pay for maintenance of $230 for a company vehicle using a debit card.

• Debit Repairs and Maintenance Expense; credit Cash

• Debit Cash; Credit Maintenance Expense

• Debit Vehicle Expense; credit Cash

• Debit Cash; Credit Vehicle Expense

Multiple Choice

Damon Company receives its monthly bank statement, which reports a balance of $1,700. After comparing this to the company's cash records, Damon's accountants determine that deposits outstanding total $3,000 and checks outstanding total $3,250. Calculate the reconciled bank balance for cash.

• $1,700

• $450

• $3,000
• $1,450

Multiple Choice

Bourne Incorporated reports a cash balance at the end of the month of $2,120. A comparison of the company's cash records with the monthly bank statement reveals several additional cash transactions: bank service fees ($65), an NSF check from a customer ($150), a customer's note receivable collected by the bank ($1,200), and interest earned ($15). Calculate the reconciled company balance for cash.

• $2,120
• $3,120
• $1,970
• $2,085

Multiple Choice

Bourne Incorporated reports a cash balance at the end of the month of $2,270. A comparison of the company's cash records with the monthly bank statement reveals several additional cash transactions: bank service fees ($71), an NSF check from a customer ($210), a customer's note receivable collected by the bank ($1,200), and interest earned ($21). Record the amounts that increase cash

• Debit cash $1,200; Credit Interest revenue and $21

• Debit Notes Receivable $2,270; Credit Cash $1,200

• Debit cash $1,221; Credit Notes Receivable $1,200; Credit Interest Revenue $21

• Debit Cash $1,221; Credit Notes Receivable $1,221

Multiple Choice

Bourne Incorporated reports a cash balance at the end of the month of $2,270. A comparison of the company's cash records with the monthly bank statement reveals several additional cash transactions: bank service fees ($71), an NSF check from a customer ($210), a customer's note receivable collected by the bank ($1,200), and interest earned ($21). Record the amounts that decrease cash.

• Debit Service Fee Expense $71; Credit Cash $210

• Debit Service Fee Expense $71; Debit Accounts Receivable $210; Credit Cash $281

• Debit Cash $281; Credit Service Fee Expense $71; Credit Accounts Receivable $210

• Credit Cash $1,200; Credit Accounts Receivable $1,200